The Goldman Sachs Group Earnings: Here’s Why Investors are Happy Now

The Goldman Sachs Group, Inc. (NYSE:GS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.98%.

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The Goldman Sachs Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.44% to $4.29 in the quarter versus EPS of $3.92 in the year-earlier quarter.

Revenue: Rose 64.47% to $10.09 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Goldman Sachs Group, Inc. reported adjusted EPS income of $4.29 per share. By that measure, the company beat the mean analyst estimate of $3.88. It beat the average revenue estimate of $9.64 billion.

Quoting Management: “We are pleased with our performance for the quarter,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “Our strong client franchise across our businesses drove generally solid results. Still, the potential for macro-economic instability was felt in the quarter and constrained overall corporate and investor activity. We continue to be very focused on controlling our costs and efficiently managing our capital.”

Key Stats (on next page)…

Revenue decreased 9.32% from $11.13 billion in the previous quarter. EPS decreased 23.39% from $5.60 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.98 to a profit $2.91. For the current year, the average estimate has moved up from a profit of $12.84 to a profit of $13.94 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)