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New York-based The Goldman Sachs Group, Inc. (GS) is a financial institution that provides a range of financial services for corporations, financial institutions, governments, and high-net worth individuals. With a market cap of $160.8 billion, the company specializes in investment banking, trading and principal investments, asset management and securities services. The leading global investment banking, securities, and asset and wealth management firm is expected to announce its fiscal third-quarter earnings for 2024 on Tuesday, Oct. 15.
Ahead of the event, analysts expect GS to report a profit of $8.41 per share on a diluted basis, up 53.8% from $5.47 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. In the previous quarter, the company reported a record AUS of $2.9 trillion, marking the 26th consecutive quarter of long-term fee-based net inflows.
For the full year, analysts expect GS to report EPS of $35.43, up 54.9% from $22.87 in fiscal 2023. Its EPS is expected to rise 17% year over year to $41.46 in fiscal 2025.
GS stock has outperformed the S&P 500’s ($SPX) 34.4% gains over the past 52 weeks, with shares up 53% during this period. Similarly, it outshined the S&P 500 Financials Sector SPDR’s (XLF) 36.6% gains over the same time frame.
GS' recent success can be credited to its strong performance in Global Banking & Markets and Asset & Wealth Management. By refocusing on its core strengths in investment banking and trading, the company has received positive feedback from investors. With lower interest rates stimulating business activity, there is anticipation for a surge in corporate finance which could result in significant fees for Goldman Sachs. Additionally, the expectation of increased M&A activity, fueled by favorable financing terms, is likely to lead to higher fees and bonuses.
On Jul. 15, GS shares closed up more than 2% after reporting its Q2 results. The company’s EPS of $8.62 slightly surpassed the analyst expectation of $8.34. Its net revenue was $12.7 billion, stronger than the consensus of $12.4 billion. It beat analysts' estimates due to robust debt underwriting and fixed-income trading.
Analysts’ consensus opinion on GS stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 14 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and eight give a “Hold.” GS’ average analyst price target is $514.33, indicating a potential upside of 3.9% from the current levels.
On the date of publication, Neha Panjwani 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.
