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

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!