The Goldman Sachs Group Earnings: Here’s Why the Stock is Rising 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 1.10%.

The Goldman Sachs Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 107.87% to $3.7 in the quarter versus EPS of $1.78 in the year-earlier quarter.

Revenue: Rose 0.21% to $8.61 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Goldman Sachs Group, Inc. reported adjusted EPS income of $3.7 per share. By that measure, the company beat the mean analyst estimate of $2.83. It beat the average revenue estimate of $7.98 billion.

Quoting Management: “The firm’s performance was solid especially in the context of mixed economic sentiment during the quarter,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “Improving economic conditions in the U.S. drove client activity and the strength of our global client franchise allowed us to deliver positive performance across a number of our businesses. While the operating environment has shown noticeable signs of improvement, we continue to put a premium on disciplined risk management, particularly in regard to the firm’s strong capital and liquidity levels.”

Key Stats (on next page)…

Revenue decreased 26.87% from $11.77 billion in the previous quarter. EPS decreased 13.75% from $4.29 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 $2.8 to a profit $2.79. For the current year, the average estimate has moved up from a profit of $14.23 to a profit of $14.37 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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