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Goldman Sachs Slips 8% As Quarterly Earnings Drop Below Estimates

Shares of banking major Goldman Sachs Group, Inc. (GS) are falling 8 percent on Tuesday's trading after the company posted lower profit in the fourth quarter, which also came in below the Street expectations. The earnings were affected by higher operating expenses and higher provisions for bad loans.

For the quarter, net earnings applicable to common shareholders declined to $3.81 billion or $10.81 per share from $4.36 billion or $12.08 per share in the prior-year quarter, while 21 analysts polled by Thomson Reuters expected the company to report earnings of $11.76 per share for the quarter.

Operating expenses were $7.27 billion for the fourth quarter, 23 percent higher than last year, due to higher compensation and benefits expenses, professional fees and net provisions for litigation and regulatory proceedings.

Net revenues for the quarter grew 8 percent to $12.64 billion from $11.74 billion in the same quarter last year while analysts expected $12.08 billion in revenues.

Currently at $348.90, the stock has traded between $270.62 and $426.16 during the past 52 weeks.

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