Goldman Sachs Group Inc. Earnings: Revenue and Profit Decline

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

S&P 500 (NYSE:SPY) component Goldman Sachs Group Inc. (NYSE:GS) posted a decrease in profit as revenue declined. Goldman Sachs is a global investment banking and securities firm that specializes in investment banking, trading and principal investments, asset management and securities services.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Goldman Sachs Group Earnings Cheat Sheet for the Fourth Quarter.

Results: Net income for the diversified investments company fell to $1.01 billion ($1.84 per share) vs. $2.39 billion ($3.79 per share) a year earlier. This is a decline of 57.6% from the year earlier quarter.

Revenue: Fell 30% to $6.05 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GS beat the mean analyst estimate of $1.46 per share. It fell short of the average revenue estimate of $6.54 billion.

Quoting Management: “This past year was dominated by global macro-economic concerns which significantly affected our clients’ risk tolerance and willingness to transact,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “While our results declined as a consequence, I am pleased that the firm retained its industry-leading positions across our global client franchise while prudently managing risk, capital and expenses. As economies and markets improve – and we see encouraging signs of this – Goldman Sachs is very well positioned to perform for our clients and our shareholders.”

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the third quarter, it missed the mark by 78 cents, and in the second quarter, it fell short by 44 cents.

The company reported a profit last quarter after being in the red the prior quarter. In the second quarter, the company booked a net loss of $1.09 billion or a loss of $1.85 per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is $3.25 per share, down from $3.66 ninety days ago. The average estimate for the fiscal year is $4.59 per share, down from $6.98 ninety days ago.

Competitors to Watch: Morgan Stanley (NYSE:MS), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Citigroup Inc. (NYSE:C), UBS AG (NYSE:UBS), Deutsche Bank AG (NYSE:DB), Wells Fargo & Company (NYSE:WFC), Credit Suisse Group AG (NYSE:CS), and Piper Jaffray Companies (NYSE:PJC).

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

More Articles About:
Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business