Global investment bank Goldman Sachs (NYSE: GS) will be reporting results this Monday before the bell. Here’s what you need to know.
Goldman Sachs beat analysts’ revenue expectations last quarter, reporting revenues of $13.45 billion, down 3% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue 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 13.3% year on year, improving from the 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 to 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 Q1 results, giving us a hint as to what we can expect. Jefferies delivered year-on-year revenue growth of 26.6%, beating analysts’ expectations by 1.4%, and FactSet reported revenues up 7.1%, topping estimates by 1.1%. Jefferies traded up 1.6% following the results while FactSet was also up 9.9%.
Read our full analysis of Jefferies’s results here and FactSet’s results here.
There has been positive sentiment among investors in the capital markets segment, with share prices up 4.8% on average over the last month. Goldman Sachs is up 16.9% during the same time and is heading into earnings with an average analyst price target of $933.75 (compared to the current share price of $912.25).
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