Goldman Sachs Group outperformed expectations in its fourth-quarter and full-year earnings with a robust financial showing across all segments.Global financial services giant Goldman Sachs (GS 1.52%) reported strong fourth-quarter and full-year earnings on Wednesday, Jan. 15, topping analyst estimates for the quarter. The company's Q4 EPS climbed to $11.95, far surpassing the analyst estimate of $8.21. Net revenue for the quarter came in at $13.87 billion, beating expectations of $12.36 billion. The impress ...

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Goldman Sachs (GS) shares gained in premarket trading Wednesday after the bank reported better-than-expected fourth-quarter results. The bank reported $4.11 billion in profit on $13.87 billion in revenue, well above the respective $2.89 billion and $12.31 billion that analysts estimated, per Visible Alpha. Goldman registered $2.35 billion in net interest income, above the $2.1 billion expectation. "I'm encouraged that we have met or exceeded almost all of the targets we set in our strategy to grow the firm ...

Global Banking & Markets Performance - Global Banking & Markets net revenues for 2024 were $34.94 billion, a 16% increase compared to 2023[3] - Investment banking fees for 2024 were $7.73 billion, a 24% increase compared to 2023, driven by higher revenues in Debt and Equity underwriting[4] - FICC net revenues for 2024 were $13.20 billion, a 9% increase compared to 2023, primarily due to higher revenues in FICC financing and intermediation[5] - Equities net revenues for 2024 were $13.43 billion, a 16% increase compared to 2023, driven by higher revenues in Equities intermediation and financing[6] - Fourth quarter 2024 net revenues in Global Banking & Markets were $8.48 billion, a 33% increase compared to the same period in 2023[7] - Global Banking & Markets net revenues grew 16% year-over-year to $34.943 billion in 2024, with investment banking fees up 24% to $7.732 billion[66] - Global Banking & Markets generated $34.94 billion in net revenues, driven by record Equities and strong Investment banking fees and FICC performance[69] Asset & Wealth Management Performance - Asset & Wealth Management net revenues for 2024 were $16.14 billion, a 16% increase compared to 2023, driven by higher Management and other fees and Equity investments[10][40] - Fourth quarter 2024 net revenues in Asset & Wealth Management were $4.72 billion, an 8% increase compared to the same period in 2023[25] - Asset & Wealth Management net revenues increased 16% to $16.142 billion in 2024, with management and other fees rising 10% to $10.425 billion[66] - Asset & Wealth Management achieved $16.14 billion in net revenues, including record Management and other fees and Private banking and lending revenues[69] Platform Solutions Performance - Platform Solutions net revenues for 2024 were $2.43 billion, a 2% increase compared to 2023, reflecting slightly higher revenues in Consumer platforms[27] - Fourth quarter 2024 net revenues in Platform Solutions were $669 million, a 16% increase compared to the same period in 2023[43] - Platform Solutions net revenues grew 2% to $2.427 billion in 2024, with consumer platforms contributing $2.147 billion[66] - Platform Solutions revenue for 2024 was $2.43 billion, with Consumer platforms contributing $2.15 billion and Transaction banking $280 million[49] Full-Year Financial Performance - Full year 2024 net revenues were $53.51 billion, a 16% increase compared to 2023, driven by higher revenues in Global Banking & Markets and Asset & Wealth Management[21] - Full-year 2024 net revenues increased 16% to $53.51 billion, driven by a 24% increase in investment banking revenue and a 27% increase in net interest income[56] - Full-year 2024 net revenues reached $53.51 billion, with net earnings of $14.28 billion and diluted EPS of $40.54[69] Credit Losses and Provisions - Provision for credit losses in Q4 2024 was $351 million, a decrease from $577 million in Q4 2023 and $397 million in Q3 2024, primarily driven by net charge-offs in the credit card portfolio[47] - Full-year 2024 provision for credit losses totaled $1.35 billion, with Q4 2024 contributing $351 million[48] Operating Expenses and Efficiency - Full-year 2024 operating expenses were $33.77 billion, a 2% decrease from 2023, with an efficiency ratio of 63.1% compared to 74.6% in 2023[52] Capital Returns to Shareholders - The company returned $11.80 billion of capital to common shareholders in 2024, including $8.00 billion in share repurchases and $3.80 billion in dividends[53] Quarterly Earnings and Shareholder Metrics - Q4 2024 net earnings applicable to common shareholders were $3.92 billion, a 110% increase from Q4 2023, with diluted earnings per share of $11.95[57] - Book value per common share grew 7.4% to $336.77 in 2024[69] Balance Sheet and Capital Ratios - Total assets as of December 31, 2024, were $1.67 trillion, with cash and cash equivalents at $182 billion and loans at $196 billion[58] - Common equity tier 1 capital increased to $103.0 billion as of December 31, 2024, up from $99.4 billion in December 2023[59] - Common equity tier 1 capital ratio under standardized capital rules rose to 15.0% in December 2024, compared to 14.4% in December 2023[59] Assets Under Supervision (AUS) - Total assets under supervision (AUS) reached $3.137 trillion as of December 31, 2024, up from $2.812 trillion in December 2023[61] - Net inflows into total AUS for the year ended December 31, 2024, were $214 billion, driven by $106 billion in long-term AUS inflows[61] - Net market appreciation for AUS in 2024 was $111 billion, contributing to the overall growth in AUS[61] - Assets under supervision increased 12% to a record $3.14 trillion in 2024[69] Regional Performance - Americas contributed 66% of Q4 2024 net revenues, totaling $9.10 billion, a 17% increase from Q4 2023[68] - Asia's net revenues grew 87% year-over-year to $1.99 billion in Q4 2024[68] - Full-year Americas net revenues increased 17% to $34.45 billion in 2024, maintaining a 64% share of total revenues[71] - Asia's full-year net revenues rose 32% to $6.81 billion in 2024, increasing its share to 13% of total revenues[71] Risk Metrics - Average daily VaR for interest rates was $83 million in Q4 2024, up from $75 million in Q3 2024[60] - Total average daily VaR for Q4 2024 was $96 million, compared to $92 million in Q3 2024[60] Quarterly Revenue Highlights - Goldman Sachs reported Q4 2024 net revenues of $13.87 billion, a 9% increase from Q4 2023[67]

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Earnings Reports - JPMorgan Chase, Wells Fargo, and Citigroup are reporting results on Wednesday, while Bank of America and Morgan Stanley are due to report on Thursday [1] - Goldman Sachs is scheduled to report fourth-quarter earnings before the opening bell on Wednesday [2] Goldman Sachs Performance - Goldman Sachs shares jumped nearly 50% last year, outperforming its big bank rivals, driven by the Federal Reserve's easing cycle and the November election of Donald Trump, which boosted expectations for mergers and stock deals [3] - The bank's fourth-quarter results are expected to show a double-digit percentage rise in investment banking and trading fees, with investment banking revenue for the industry jumping 29% in the quarter, fueled by rising advisory and equity capital markets activity [4] - The buoyant stock market late last year is expected to boost results within Goldman Sachs' asset and wealth management division, which CEO David Solomon has called the growth engine of the firm [5] Strategic Shift - Goldman Sachs has shifted away from an ill-fated foray into consumer finance, a strategic pivot that has led to a different setup compared to a year earlier when the company faced mounting losses and pressure from internal stakeholders [6] Financial Metrics - Goldman Sachs' earnings are expected to be $8 22 per share, with revenue of $12 39 billion [7] - Trading revenue includes $2 45 billion from Fixed Income and $3 billion from Equities, while Investing Banking Revenue is expected to be $2 01 billion [7]

Core Viewpoint - The market anticipates Goldman Sachs (GS) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Goldman Sachs is expected to post quarterly earnings of $7.99 per share, reflecting a year-over-year increase of +45.8% [3]. - Revenues are projected to reach $12.2 billion, which is a 7.8% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.38% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Goldman is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.98% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Goldman Sachs currently holds a Zacks Rank of 2, indicating a high likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Goldman Sachs exceeded the expected earnings of $6.85 per share by delivering $8.40, resulting in a surprise of +22.63% [12]. - The company has beaten consensus EPS estimates in each of the last four quarters [13]. Industry Comparison - The PNC Financial Services Group is expected to report earnings of $3.30 per share for the same quarter, representing a year-over-year change of +4.4%, with revenues expected at $5.47 billion, up 2.1% [17]. - PNC's consensus EPS estimate has been revised 0.7% higher, but its Earnings ESP is -0.07%, making it challenging to predict an earnings beat [18].

Goldman Sachs (GS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a chang ...

Key TakeawaysGoldman Sachs is set to report fourth-quarter results before the market opens Wednesday, with analysts expecting revenue and net interest income growth.Just over half of analysts tracked by Visible Alpha have a "buy" or equivalent rating for the stock, with their consensus price target implying about 10% upside.Several other big banks including JPMorgan and Citigroup are also scheduled to report Wednesday morning. Goldman Sachs (GS) is set to report fourth-quarter results before the market open ...

Core Viewpoint - Goldman Sachs is expected to report strong earnings for the fourth quarter of 2024, driven by robust investment banking performance, despite concerns over rising provisions and a weak capital position [2][22]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for fourth-quarter revenues is $12.13 billion, indicating a 7% increase from the previous year [5]. - The consensus estimate for quarterly earnings has been revised downward to $7.87 per share, suggesting a 43.6% increase from the year-ago quarter [5]. Group 2: Factors Influencing Q4 Results - Strong client activities and market volatility are expected to boost market-making revenues, driven by economic expansion prospects and easing monetary policy [8]. - Global mergers and acquisitions (M&As) have improved significantly, with deal value and volume increasing due to strong financial performance and robust U.S. economic growth, despite geopolitical challenges [9]. - The IPO market shows cautious optimism, with a surge in follow-up equity issuances and decent bond issuance activity due to favorable economic conditions [10]. - Goldman is expected to report IB fees of $2.05 billion, reflecting a 24% growth from the previous year [11]. - Net Interest Income (NII) is estimated at $2.08 billion, suggesting a 5.6% year-over-year rise, supported by a stabilizing macroeconomic backdrop and recent Federal Reserve interest rate cuts [13]. Group 3: Company Performance and Valuation - Goldman Sachs has a history of earnings surprises, with an average surprise of 29.33% over the last four quarters [2][4]. - The company's shares are trading at 13.43X forward 12-month earnings, which is lower than the industry average of 13.98X and peers like JPMorgan and Morgan Stanley [19][21]. - The company is scaling back its consumer banking footprint to focus on trading and investment banking, which have shown strong results [22]. Group 4: Shareholder Returns and Future Outlook - Goldman increased its common stock dividend by 9.1% to $3 per share in July 2024, with a historical annualized growth rate of 24.53% over the past five years [25]. - The company plans to expand its private credit portfolio to $300 billion in five years, positioning itself for long-term growth [23]. - Overall, improving client activities, a favorable lending scenario, and solid capital markets businesses suggest a positive outlook for Goldman Sachs [26].