Long-term optimists in the analyst community are giving Goldman Sachs too much credit. Slow trading across the investment-banking industry may doom the $90 billion firm to another ho-hum set of quarterly results next week. But analysts reckon its profit growth over the next 18 months will far outpace Wall Street rivals.
Goldman, led by Lloyd Blankfein, is expected to earn $1.4 billion for the three months to the end of June, according to estimates compiled by Thomson Reuters. That equates to an annualized return on equity of just 7.7 percent, weaker than the 8.9 percent showing, after stripping out accounting gains, that the firm managed in a dismal first quarter.