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The Goldman Sachs Group, Inc. (GS), the financial services giant headquartered in New York, provides various services, including investment banking, asset management, advisory, and private banking services, with a market cap of $145.9 billion. It is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on July 15.
Ahead of the event, analysts expect Goldman Sachs to report a profit of $8.85 per share, up a massive 187.3% from $3.08 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion.
Its earnings for the last reported quarter increased by 31.7% year over year to $11.58 per share, beating the consensus estimates by 35.6%. The rise in revenue from investment banking and market making segments has been the primary reason behind this growth.
For fiscal 2024, analysts expect Goldman Sachs to report an EPS of $36.59, up 60% from $22.87 in fiscal 2023. Fiscal 2025 EPS is expected to grow 9.2% annually to $39.95.
Shares of Goldman Sachs rallied 44.2% over the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 24.8% gains over the same period. Additionally, it has also outpaced the S&P 500 Financials Sector SPDR’s (XLF) 25.1% returns over the same time frame.
Goldman Sachs faced considerable headwinds, grappling with economic uncertainty due to unpredictable U.S. interest rates and increased provisions for credit losses from credit cards and wholesale loans. The bank's foray into consumer banking resulted in substantial losses, prompting senior management departures and significant layoffs, while missteps in retail banking strategies drew criticism from investors and advisory firms.
However, the recovery in underwriting, deals, and bond trading provided crucial tailwinds, significantly enhancing its financial performance in fiscal Q1 of 2024. Strong investment banking results and robust debt underwriting activities fueled success, complemented by advisory services on AI applications and improved deal-making conditions. This dynamic turnaround led GS stock to rise 2.9% following the stellar Q1 earnings report on April 15.
The consensus opinion on GS stock is bullish, with a “Strong Buy” rating overall. Out of 22 analysts covering the stock, 16 advise a “Strong Buy” rating, one has a “Moderate Buy” rating, and five suggest a “Hold” rating. Over the past three months, a new “Strong Buy” recommendation has been added.
Even though Goldman Sachs is currently trading above its average price target of $450.29, the Street-high target price of $525 suggests the stock could rally as much as 16.1%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
