Goldman Sachs Misses Earnings Estimates

Goldman Sachs Misses Earnings Estimates

The investment firm has reported a lower than expected EPS and revenue which is mainly due to the worldwide economic instability currently being experienced

Recently, it was seen that Goldman Sachs Group rolled out its earnings report for the quarter which did not turn out to be as much as the expectations of the analysts in the market, which was followed by a downgrade on the stock index as the stock value fell. The adjusted earnings that were noted down by the analysts reported by the firm turned out to be $2.64 per share while equity giants like Bloomberg and others in the league predicted the EPS to come around at $3. This fall has come around to be at 11 percent, which have become of the main reasons for the recent fall in the share price.

Analysts believe that this is something to be taken into consideration, as this is not a usual practice that the investment firm goes through, as it has never revealed such numbers in a really long time, always meeting the investors and analyst’s expectations and making it big in every quarter. The investment firm has been showing positivity for the past nine quarters, in which it has been reporting huge numbers for the EPS and the revenue, beating the estimates at all time. This is why the negative change in the way things went within the company has the analysts in the industry to raise their brows and think about what really could be putting such a downward effect to the giant.

Investors have turned out to be on the negative side for sure, which is backed up by the missing of the estimates for the first time in a really long time. The total revenue, for that the giant received turned out to be $6.86 billion, while the analysts at Bloomberg were expecting huge number of $7.12 billion, and the difference surely shook up the way investors thought about investing their capital in the company.

On the other hand, the CEO of the equity firm informed the market that many different businesses that were being worked under the giant have been showing relatively better results, which has been made possible despite the hiking up of the interest rate on the shares, which was recently announced by the Federal Reserve. The main reason for the downfall in the revenue of the banking sector is basically due to the uncertainty in the economy that is being witnessed by the global market. However, the higher management of the firm insisted upon the facts that things are still looking better for the giant keeping in mind it is carrying out its business on a comparatively lower level, only for the economic fluctuations.

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