Goldman Sachs Aims at New Yearly High on Earnings

Goldman Sachs
Goldman Sachs

Goldman Sachs Group Inc. (NYSE: GS) reported fourth-quarter and full-year 2012 results before markets opened this morning. The investment bank and financial services giant reported quarterly diluted earnings per share (EPS) of $5.60 on revenue of $9.24 billion. In the same period a year ago, it reported EPS of $1.84 on revenue of $6.05 billion. Today's results also compare to the consensus estimates for EPS of $3.78 on revenue of $7.91 billion.

For the full year, Morgan reported EPS of $14.13 on revenue of $34.12 billion. A year ago the company reported EPS of $4.51 on revenue of $28.8 billion. The consensus estimate called for $12.20 per share and $32.64 billion in revenue.

The bank's CEO said:

While economic conditions remained challenging for much of last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders. The firm's strategic position provides a solid basis on which to grow and generate superior returns.

Goldman increased its Basel I Tier 1 capital ratio to 16.7% in the fourth quarter, up from 15% a year ago. The Tier 1 common ratio rose from 13.1% at the end of 2011 to 14.5% at the end of 2012.

The bank did not offer guidance for 2013, but the consensus estimates call for full-year EPS of $12.79 on revenues of $33.07 billion. Based on this year's results, it is a pretty safe bet that those estimates will rise. In the past 90 days, for example, the EPS estimate for the 2013 fiscal year actually has dropped by $0.03. That is about to turn around.

Shares are trading more than 2% higher in the premarket this morning, at $139.50, which would be a new 52-week high if it holds. The current 52-week range is $90.43 to $138.15. Thomson Reuters had a consensus analyst price target of around $134.70 before today's results were announced.

Filed under: 24/7 Wall St. Wire, Banking & Finance, Earnings Tagged: GS

Originally published