Global investment bank Goldman Sachs (NYSE: GS) will be reporting earnings this Tuesday before market open. Here’s what to expect.
Goldman Sachs beat analysts’ revenue expectations last quarter, reporting revenues of $20.34 billion, up 39.5% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ Banking & Markets segment estimates.
Is Goldman Sachs a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Goldman Sachs’s revenue to grow 10.3% year on year, slowing from the 19.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Goldman Sachs has a history of exceeding Wall Street’s expectations.
Looking at Goldman Sachs’s peers in the capital markets segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Jefferies delivered year-on-year revenue growth of 8.5%, beating analysts’ expectations by 1.1%, and FactSet reported revenues up 6.3%, topping estimates by 0.8%. Jefferies traded down 1.3% following the results while FactSet was up 6.8%.
Read our full analysis of Jefferies’s results here and FactSet’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the capital markets stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Goldman Sachs is down 9.2% during the same time and is heading into earnings with an average analyst price target of $1,069 (compared to the current share price of $897.05).
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