Goldman Sachs is anticipated to present second-quarter earnings prior to the opening bell. Forecasts from analysts indicate that the Wall Street behemoth should post earnings of $3.18 per share and revenue of $10.84 billion.
Goldman Sachs is due to release their second-quarter earnings prior to the opening bell on Wednesday, and the consensus among Wall Street is that the results will look like this: Earnings: $3.18 per share, Revenue: $10.84 billion, Trading Revenue: Fixed income $2.78 billion; Equities $2.42 billion and Investment Banking Revenue: $1.49 billion.
It has been a tough environment for Goldman’s most important businesses, as a downturn in investment banking and trading activity has been sustained, and the bank has warned of write-downs in commercial real estate and impairment stemming from the impending sale of its fintech unit, GreenSky. This could be one of the weakest performances of CEO David Solomon’s tenure.
Since Goldman primarily relies on unpredictable Wall Street activities such as trading and investment banking, they can have greater returns in strong markets but falter if the market is not as strong. The bank has reported that its trading revenue is poised to experience a 25% decline in the quarter, and investment banking has been sluggish due to restrained issuance and IPOs resulting from the Federal Reserve’s interest rate increases. While JPMorgan Chase reported an improved trading and banking performance last week, it is uncertain if Goldman will surpass its axioms.
Analysts will probably inquire Solomon about his plans to keep scaling back his misguided venture into consumer banking. It is still not clear how far the talks to divest Goldman’s Apple Card business to American Express have gotten.
Goldman’s stock has slightly declined by 2% this year, which is less than the 18% dip of the KBW Bank Index. In contrast, JPMorgan, Citigroup, Wells Fargo, Bank of America and Morgan Stanley all posted results that outstripped analyst forecasts on Friday and Tuesday, respectively.
This story is ongoing; more updates will be provided.
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