Citigroup analysts Keith Horowitz and Craig Singer, in a note titled "Taking One Last Whack to third quarter," said they now expect Goldman to post a loss of 65 cents a share, compared with their prior estimates of a profit of 10 cents per share.
The latest cut to Goldman's outlook by Citigroup analyst Horowitz – a five-star rated analyst according to StarMine for the accuracy of his earnings estimates on Goldman – adds to the already grim outlook that Wall Street analysts have for US banks' third-quarter results.
Analysts are estimating that financial companies in the Standard & Poor's 500 index will report earnings only 3.9 per cent higher than a year earlier, instead of the 14.6 per cent increase they forecast on 1 August, according to Thomson Reuters Proprietary Research.
The first big bank to post results will be JPMorgan Chase & Co on 13 October. Goldman will report its third-quarter results on 18 October.