David Solomon, chief govt officer of Goldman Sachs Group Inc., throughout a Bloomberg Tv on the Goldman Sachs Monetary Companies Convention in New York, US, on Tuesday, Dec. 6, 2022.
Michael Nagle | Bloomberg | Getty Pictures
Goldman Sachs posted fourth-quarter outcomes on Tuesday that missed analysts’ estimates for revenue amid steep declines in funding banking and asset administration income.
Here is what the corporate reported:
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- Earnings: $3.32 per share vs. $5.48 estimate of analysts surveyed by Refinitiv
- Income: $10.59 billion vs. $10.83 billion
The financial institution mentioned quarterly revenue plunged 66% from a 12 months earlier to $1.33 billion, or $3.32 per share, properly beneath the Refinitiv estimate. Income held up higher at $10.59 billion, down 16% from a 12 months earlier and edging out the consensus estimate.
Shares of the New York-based financial institution dipped 2.4% in premarket buying and selling.
How lengthy will the funding banking drought final? That is one of many prime questions analysts could have for Goldman CEO David Solomon.
Whereas the fourth quarter was an unsightly one for bankers — Wall Avenue rivals JPMorgan Chase and Citigroup every posted declines in funding banking income of almost 60% final week — analysts query the percentages of a rebound someday later this 12 months.
They’re going to additionally need to hear Solomon’s views on headcount and bills after the financial institution laid off as much as 3,200 workers final week, in addition to particulars about Goldman’s shopper operations because it scales again ambitions there.
Goldman shares have climbed 8.9% this 12 months going into Tuesday’s buying and selling, in contrast with a 6.7% advance for the KBW Financial institution Index.
Final week, JPMorgan Chase and Financial institution of America topped revenue expectations on surging internet curiosity earnings, whereas Wells Fargo and Citigroup posted combined outcomes. Morgan Stanley can also be scheduled to launch outcomes Tuesday.
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