Goldman Sachs Group, Inc. (GS) Earnings Set to Soar

Page 1 of 2

Goldman Sachs Group, Inc. (NYSE:GS) will release its quarterly report next Tuesday, and the investment bank has done an impressive job over the past year of bolstering its business fundamentals and boosting its share price. But even with an expected rise this quarter, will Goldman Sachs’ earnings continue to grow fast enough to justify its current stock price?

Goldman Sachs Group Inc (NYSE:GS)

Goldman Sachs Group, Inc. (NYSE:GS) drew plenty of criticism during the financial crisis because of the role it played in facilitating some of the sophisticated transactions that eventually brought the global financial system to the brink of collapse. As regulators have clamped down on the banking industry, Goldman has continued to look for ways to earn profits from its wide variety of different businesses. Let’s take an early look at what’s been happening with Goldman Sachs over the past quarter and what we’re likely to see in its quarterly report.

Stats on Goldman Sachs

Analyst EPS Estimate $2.82
Change From Year-Ago EPS 58%
Revenue Estimate $7.98 billion
Change From Year-Ago Revenue 20.5%
Earnings Beats in Past 4 Quarters 4

Source: Yahoo! Finance.

Will this quarter be the last big jump for Goldman Sachs earnings?
In recent months, analysts have had mixed views on the earnings prospects for Goldman Sachs Group, Inc. (NYSE:GS), cutting nearly a dime per share from their June quarter estimates, but boosting their full-year consensus by $0.37 per share. The stock has continued its upward trajectory, rising 8% since early April.

Goldman Sachs Group Inc (NYSE:GS)Much of Goldman’s earnings rebound has come from a combination of a strong environment for bond issuance and smart internal moves within the investment bank. In its first quarter, Goldman Sachs Group, Inc. (NYSE:GS) used tactics like cutting its compensation-to-revenue ratio to help it boost its return on equity. Meanwhile, even though its trading revenues fell, rising corporate debt activity provided an offset, helping the bank grow its total revenue by 9%.

Goldman Sachs Group, Inc. (NYSE:GS) has also made a number of high-profile investments recently, not all of which have panned out. In May, the company said it would invest in a $500 million fund to help SolarCity Corp (NASDAQ:SCTY) provide financing for its residential solar-installation customers, seeking to cash in on the trend toward smaller solar projects. Yet Goldman’s bid to take insurance-software company Ebix Inc (NASDAQ:EBIX) private didn’t turn out as well, as the launch of an investigation by federal prosecutors last month led the investment bank to walk away from its proposed $820 million purchase offer.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!