Goldman Sachs
earnings are set to be reported Tuesday as investor await signs of what a renewed focus on the bank’s core segments means for the company as it backs away from its retail business.
Analysts are expecting Goldman to report fourth-quarter earnings of $3.62 a share, up from $3.32 recorded the year prior, on revenue of $10.8 billion, up from the $10.6 billion recorded during the same quarter in 2022. Net interest income is forecast to come in at $1.51 billion, down from $2.1 billion.
Goldman shares rose 12% in 2023, with most of the gains arriving in the last three months of the year—when they rose 19%—beating the
S&P 500’s
11% gain while lagging behind the
SPDR S&P Bank ETF
(KBE) 25% jump during that period.
Investors will be watching to see if the company offers guidance that suggests a shift back toward its bread and butter: investment banking and trading. In October, Goldman announced the sale of lending platform GreenSky, indicating a pivot away from the consumer business, which seemed to launch the stock’s end-of-the-year rally.
That being said, the stock jump prompted one BMO Capital Markets analyst to cut his rating on the stock last week, citing concerns over whether the stock can sustain its current valuation given its exposure to revenue from capital markets, an often volatile area.
Write to Emily Dattilo at [email protected]
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