Goldman Sachs Group Earnings Preview

Motley Fool Staff
Updated

Goldman Sachs Group (NYS: GS) didn't hit the Street's expectations last quarter, but investors hope that it will rebound this quarter. The company will unveil its latest earnings on Tuesday. Goldman Sachs is a global investment banking and securities firm that specializes in investment banking, trading and principal investments, asset management, and securities services.

What analysts say:

  • Buy, sell, or hold?: The majority of analysts back Goldman Sachs Group as a buy. But with 55% of analysts rating it a buy, Goldman Sachs Group is still below the mean analyst rating of its nearest nine competitors, which average 63.8% buys. Analysts like Goldman Sachs Group better than competitor UBS AG overall. Three out of six analysts rate UBS AG a buy compared to 11 of 20 for Goldman Sachs Group.

  • Revenue forecasts: On average, analysts predict $4.78 billion in revenue this quarter. That would represent a decline of 46.3% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is a loss of $0.02 per share. Estimates range from a loss of $1.02 to a profit of $2.36.

What our community says:
CAPS All-Stars are solidly backing the stock with 88.5% awarding it an outperform rating. The community at large concurs with the All-Stars with 89.1% granting it a rating of outperform. Fools are bullish on Goldman Sachs Group and haven't been shy with their opinions lately, logging 2,505 posts in the past 30 days. Despite the majority sentiment in favor of Goldman Sachs Group, the stock has a middling CAPS rating of three out of five stars.

Management:
Goldman Sachs Group's income has fallen year over year by an average of 8.9% over the past five quarters. Revenue has fallen for the past three quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Net Margin

11.4%

20.0%

23.0%

17.7%

For all our Goldman Sachs Group-specific analysis, including earnings and beyond, add Goldman Sachs Group to My Watchlist.

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At the time thisarticle was published

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