Earnings Previews: Brokerage Firms June, 2007 (BSC, GS, LEH)

Banking, finance, and taxes

Published: June 11, 2007 12:46 pm

Stock Tickers: BSC, GS, LEH, MS

This Week could have quite easily been titled "Brokerage Firms Earnings Season." We have earnings reports from the major bulge-bracket Wall Street firms this week.

On Tuesday, Lehman (LEH-NYSE) reports earnings with estimates coming in at $1.88 EPS and $4.97 Billion in revenues. With the 1.9% gain today, Lehman is up roughly 3% since May 31.

On Thursday, we have Bear Stearns (BSC-NYSE) and Goldman Sachs (GS-NYSE). Bear Stearns (BSC-NYSE) is expected to post $3.50 EPS and $2.33 Billion in revenues. Bear Stearns (BSC-NYSE) shares are down less than 1% since May 31. Goldman Sachs (GS-NYSE) is expected to post $4.79 EPS and $10.15 Billion in revenues. Goldman Sachs shares are down about 2% since May 31.

Morgan Stanley (MS) is off this week, with earnings scheduled for June 20, 2007.

As a reminder, the formula that traders look for in bulge bracket earnings is for earnings per share to be above estimates. A mild beat is usually treated as a miss, and it has been frequent in recent years for brokerage firms to sell off if they have been running up into earnings.

Jon C. Ogg
June 11, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

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