FOX Business Network’s [FBN] Charlie Gasparino is reporting today that Goldman Sachs (GS) insiders expect their earnings estimates to come down even more due to the pending SEC suit, and the mood at the firm is “horrendous.”
Excerpts below: Courtesy of FOX Business Network
“Their earnings estimates have come down 50 per cent since May. FBN has learned that people inside Goldman expect it to come down even more before they actually issue second quarter earnings. The reason is obviously the SEC settlement is out there, lousy month for trading, lousy month in the equity business. A lot of people are baking in this SEC settlement inside the earnings even though they haven’t paid it and no one knows what it’s going to be. I did a little counter research to try to see if these hold up…with people who are competitors with Goldman, what people on the trading desks, in the know think. They think there is an overreaction. They think the SEC settlement may not come for awhile, may not come until September. The other thing is, Goldman knows how to trade…people are discounting their ability to trade out of this quarter, and they are discounting it way too much. You talk to competitors; they say these analysts are going way over the top. Analysts are taking a dimmer view of Goldman more than anybody else.”
“The mood is horrendous among employees.”
