Goldman Sachs Group Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Goldman Sachs Group (NYSE:GS) will unveil its latest earnings tomorrow, Wednesday, January 16, 2013. Goldman Sachs is a global investment banking and securities firm that specializes in investment banking, trading and principal investments, asset management and securities services.

Goldman Sachs Group Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $3.29 per share, a rise of 78.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $3.18. Between one and three months ago, the average estimate moved up. It has risen from $3.23 during the last month. For the year, analysts are projecting profit of $11.89 per share, a rise of more than twofold from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 67 cents, coming in at net income of $2.85 a share versus the estimate of profit of $2.18 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, the company swung to a profit of $1.51 billion ($2.85 a share) from a loss of $393 million (84 cents) a year earlier, beating analyst estimates. Revenue rose 81.6% to $10.14 billion from $5.58 billion.

Here’s how Goldman Sachs Group traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

GS

Wall St. Revenue Expectations: On average, analysts predict $7.83 billion in revenue this quarter, a rise of 29.4% from the year-ago quarter. Analysts are forecasting total revenue of $32.58 billion for the year, a rise of 13.1% from last year’s revenue of $28.81 billion.

Stock Price Performance: Between November 12, 2012 and January 10, 2013, the stock price had risen $20.13 (17.2%), from $117.24 to $137.37. The stock price saw one of its best stretches over the last year between August 30, 2012 and September 7, 2012, when shares rose for six straight days, increasing 11.1% (+$11.61) over that span. It saw one of its worst periods between September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 6.8% (-$8.28) over that span.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 22.7% in the fourth quarter of the last fiscal year, 13.5% in the first quarter and 10% in the second quarter before climbing in the third quarter.

Analyst Ratings: There are mostly holds on the stock with 13 of 22 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)