Ms Whitney is best known for managing to wipe $369bn (£245bn) from the value of global equities in a single day in October 2007 after accurately warning that Citigroup needed to raise an extra $30bn.
She has cautioned that the conditions in Goldman's most recent quarter were the "worst" in more than a year for parts of its business, as a result of reduced trading volumes. In a research note published by her research firm, Meredith Whitney Associates, she slashed her forecast from earnings of $4.75-a-share to $1.70-a-share – approximately equivalent from a profit of $2.59bn to $928m.
The drastic cut comes just two weeks before Goldman is due to publish its second-quarter results, on July 20.
Ms Whitney said the cuts stem from a "heinous trading environment" and reduced banking activity flowing from "the worst quarter for debt and equity underwriting volume in over a year as volatility spiked, and global equity indices" fell sharply. The bank is also likely to note its higher legal costs as a result of its ongoing spat with the Securities and Exchange Commission, as well as set aside money to fund its share of the UK's bonus tax.
Consensus estimates compiled by Bloomberg range between $1.60 and $3.21-a-share, with an average of $2.30.
Goldman declined to comment.
She has cautioned that the conditions in Goldman's most recent quarter were the "worst" in more than a year for parts of its business, as a result of reduced trading volumes. In a research note published by her research firm, Meredith Whitney Associates, she slashed her forecast from earnings of $4.75-a-share to $1.70-a-share – approximately equivalent from a profit of $2.59bn to $928m.
The drastic cut comes just two weeks before Goldman is due to publish its second-quarter results, on July 20.
Ms Whitney said the cuts stem from a "heinous trading environment" and reduced banking activity flowing from "the worst quarter for debt and equity underwriting volume in over a year as volatility spiked, and global equity indices" fell sharply. The bank is also likely to note its higher legal costs as a result of its ongoing spat with the Securities and Exchange Commission, as well as set aside money to fund its share of the UK's bonus tax.
Consensus estimates compiled by Bloomberg range between $1.60 and $3.21-a-share, with an average of $2.30.
Goldman declined to comment.
