Goldman Sachs reported its largest earnings miss in a decade, amidst revenue decrease and higher-than-expected loan loss provisions.
The bank’s fourth quarter earnings came in at $3.32 per share, -39% below the $5.48 expected by analysts polled by Refinitiv. That implies the biggest EPS miss since October 2011 (based on Refinitiv data).
Revenue was $10.59 billion in the quarter vs. $10.83 billion expected by analysts polled by Refinitiv.
Investment banking fees fell -48% to $1.87 billion on softening issuance activity in equity and debt markets and lower advisory fees. The bank’s deals backlog was smaller compared with the third quarter.
Asset & Wealth Management segment’s revenue was down -27% from a year earlier to $3.56 billion on reduced gains on private equity holdings and markdowns in debt instruments.
Goldman had $972 million provision for credit losses in the quarter, which is 50% more than analysts had expected for the quarter. The figure is also higher compared with $344 million a year earlier, as the bank set aside more money for potential losses in credit card and point-of-sale loan portfolios.
GS saw its Momentum Indicator move above the 0 level on June 28, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 78 similar instances where the indicator turned positive. In of the 78 cases, the stock moved higher in the following days. The odds of a move higher are at .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of investment banking, securities and asset management services
Industry InvestmentBanksBrokers