Goldman Cuts Merrill, Citi Estimates

Still, both stocks trade higher.
By TSC Staff ,

Goldman Sachs lowered its estimates on both

Merrill Lynch

(MER)

and

Citigroup

(C) - Get Report

, saying both could post losses in the first quarter because of additional writedowns,

Bloomberg

reported Tuesday.

The firm predicted that Citi could lose up to $1.55 a share in the quarter owing to writedowns that could reach $12 billion. Goldman had been expecting a loss of $1 a share for Citi.

For Merrill, Goldman is now anticipating a loss of $2.45 a share, compared with its earlier estimate for a profit of 45 cents, because of an expected writedown of around $2 billion.

Despite the negative call from Goldman, both stocks were trading higher. Shares of Merrill were up 2.9% in the premarket, and Citi was gaining 4%.

This article was written by a staff member of TheStreet.com.

Loading ...