What To Expect From Goldman Sachs’s (GS) Q2 Earnings

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Global investment bank Goldman Sachs (NYSE: GS) will be reporting results this Tuesday morning. Here’s what you need to know.

Goldman Sachs beat analysts’ revenue expectations last quarter, reporting revenues of $17.23 billion, up 14.4% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS 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 12.7% year on year, slowing from the 14.5% increase it recorded in the same quarter last year.

Goldman Sachs Total Revenue

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 Q2 results, giving us a hint as to what we can expect. Jefferies delivered year-on-year revenue growth of 35%, missing analysts’ expectations by 3.1%, and FactSet reported revenues up 6.4%, topping estimates by 1.1%.

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 3.7% on average over the last month. Goldman Sachs is down 1.7% during the same time and is heading into earnings with an average analyst price target of $1,019 (compared to the current share price of $1,057).

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