Goldman Sachs to Report Second-Quarter Earnings: What to Expect

Introduction

Goldman Sachs, one of the largest investment banks in the world, is set to report its second-quarter earnings on Monday. The company’s performance is closely watched by investors and analysts, as it provides insight into the state of the global economy and the banking industry. In this article, we’ll break down what Wall Street expects from Goldman Sachs’ earnings report and what factors will influence its performance.

Earnings Expectations

According to data from LSEG, Goldman Sachs is expected to report earnings of $8.34 per share, with revenue of $12.46 billion. Trading revenue is expected to be a key driver of earnings, with fixed income trading expected to generate $2.96 billion and equities trading expected to generate $3.17 billion. Investing banking revenue is also expected to be strong, with estimates suggesting $1.80 billion in revenue.

Factors Influencing Earnings

Goldman Sachs’ reliance on investment banking and trading to generate revenue makes it particularly sensitive to market conditions. The company’s CEO, David Solomon, has emphasized the importance of these businesses in driving growth, and investors will be looking for signs that the company is making progress in these areas.

Another key area of focus will be asset and wealth management, which Solomon has identified as a growth engine for the bank. The company’s ability to grow its assets under management and increase revenue from wealth management services will be closely watched.

Recent Performance of Rivals

Recent earnings reports from Goldman Sachs’ rivals have been strong, with JPMorgan Chase and Citigroup both topping expectations. JPMorgan’s investment banking fees surged, while Citigroup’s equities trading results were better than expected. Bank of America and Morgan Stanley, which report their earnings on Tuesday, are also expected to have strong results.

What to Watch for in the Earnings Report

Investors will be looking for several key metrics in Goldman Sachs’ earnings report, including:

• Trading revenue: Will the company’s trading revenue meet expectations, and will it be driven by fixed income or equities trading?
• Investing banking revenue: Will the company’s investing banking revenue meet expectations, and will it be driven by mergers and acquisitions or debt capital markets?
• Asset and wealth management: Will the company’s assets under management grow, and will it increase revenue from wealth management services?
• Guidance: Will the company provide guidance on its future performance, and will it be optimistic or cautious?

Conclusion

Goldman Sachs’ second-quarter earnings report is an important event for investors and analysts. The company’s performance will provide insight into the state of the global economy and the banking industry, and will influence the stock price of the company and its peers. With expectations high and recent performance from rivals strong, investors will be looking for signs that Goldman Sachs is making progress in its key businesses.

FAQs

Q: What time does Goldman Sachs report its earnings?
A: Goldman Sachs is scheduled to report its earnings before the opening bell on Monday.

Q: What are the expectations for Goldman Sachs’ earnings?
A: According to LSEG, Goldman Sachs is expected to report earnings of $8.34 per share, with revenue of $12.46 billion.

Q: What will influence Goldman Sachs’ earnings performance?
A: The company’s reliance on investment banking and trading to generate revenue makes it particularly sensitive to market conditions. The company’s ability to grow its assets under management and increase revenue from wealth management services will also be closely watched.

Q: How will Goldman Sachs’ earnings report impact the stock price?
A: The company’s earnings report will likely influence the stock price, with strong performance driving the stock higher and weak performance driving it lower.

Q: When do Bank of America and Morgan Stanley report their earnings?
A: Bank of America and Morgan Stanley report their earnings on Tuesday.

Author: www.cnbc.com

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