Tom Reese/Paul Rubillo, Dividend.com
Goldman Sachs (GS) shares are up nearly 9% after the company reported a net loss of $2.12 billion, or $4.97 a share, in the three months ended Nov. 28, compared to a profit of $3.22 billion, or $7.01 a share, earned in the year-earlier fourth quarter.
The company's revenue dropped to negative $1.58 billion from $10.74 billion a year ago. The company experienced a big drop in its underwriting and advisory businesses. A sharp slowdown in mergers and acquisitions accounted for a 54% decline in net revenue from its financial-advisory business.
The company has said it would slash 10% of its staff, encompassing about 3,200 jobs, and eliminate bonuses for top management.
The Bottom Line
We had removed shares of GS from our ''Recommended'' list on Aug.12, when the stock traded at $178. The company has a 2.11% dividend yield, based on last night's closing stock price of $66.46. We would not chase shares here, but would watch the name carefully to see if it can consolidate near the $70 level.
Goldman Sachs (GS) is not recommended at this time, holding a Dividend.com Rating of 3.0 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
