Goldman Sachs Beats Revenue Estimates, Seen as a ‘Very Strong Quarter in a Tough Environment’
2022.04.14 17:51
Goldman Sachs (GS) Beats Revenue Estimates, Seen as a ‘Very Strong Quarter in a Tough Environment’
Shares of Goldman Sachs (NYSE:GS) are trading more than 1% higher today.
The bank reported EPS of $10.76 on net revenue of $12.93 billion, compared to analyst expectations of $11.73 billion. The annualized ROE growth came in at 15%, while analysts were projecting 12.5% growth.
Investment banking revenue totaled $2.13 billion in the quarter, missing the consensus projection of $2.28 billion. Equities sales and trading revenue came in at $3.15 billion, also above the estimates of $2.73 billion.
Trading revenue stood at $7.87 billion, well above the expected $5.84 billion.
Citi analyst Keith Horowitz said that GS managed to deliver a “very strong quarter in a tough environment.”
“We were well ahead of consensus heading into 1Q, and GS beat our number mainly on expenses while relative to consensus it was more of a top line beat.”
Evercore ISI analyst Glenn Schorr also weighed in positively.
“While investors never like to pay for great trading at Goldman and shiver at the thought of saying Goldman and consumer in the same sentence, it is what it is and a 15.8% ROTCE when capital markets are in upheaval, banking is massively disrupted and markets are off a lot should count towards Goldman executing on the plan to build a more resilient and durable revenue stream and mix of businesses,” he told clients.
By Senad Karaahmetovic
