Goldman Sachs seen headed to steep earnings drop as deal-making lags

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Goldman Sachs (GS.N) appears headed to another set of weak quarterly earnings as deal-making lags and the bank retreats from a loss-making consumer business.Goldman is expected to report third-quarter earnings per share (EPS) of $5.31 when it reports results on Tuesday, according to average estimates compiled by LSEG.

The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly/File Photoappears headed to another set of weak quarterly earnings as deal-making lags and the bank retreats from a loss-making consumer business.Goldman is expected to report third-quarter earnings per share of $5.31 when it reports results on Tuesday, according to average estimates compiled by LSEG.

, a home improvement lender, and associated loans to a consortium led by investment firm Sixth Street Partners. The transaction is set to close in the first quarter. The shift away from retail makes Goldman even more reliant on businesses that swing with economic cycles, Biggar said.The firm's global banking and markets unit, which houses investment banking and trading, accounted for about 66% of its revenue in the second quarter.

While the stock "is one of the best plays on a recovery" in investment banking, threats are mounting to such a bounce-back, UBS analyst Brennan Hawken wrote in a note.

 

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