Prepare your trading platforms, folks, because investment banking behemoth Goldman Sachs is set to unveil its first-quarter earnings this Monday before the market opens. The LA News Center has compiled the latest buzz surrounding the event to keep you informed.
The Wall Street Outlook
Analysts have their estimates in place, and here’s what they’re expecting:
- Earnings: .56 per share
- Revenue: .92 billion
- Trading Revenue: .64 billion in fixed income, .95 billion in equities
- Investment Banking Revenue: .77 billion
Solomon’s Redemption Moment?
Goldman Sachs CEO David Solomon has faced his fair share of challenges over the past year. However, there’s a growing sense of optimism that the company is ready to turn things around. With the dormant capital markets hopefully behind them and the missteps of Solomon’s retail banking venture fading into the past, stronger results could be in store.
Peers Setting the Pace
Rivals JPMorgan Chase and Citigroup have already released their first-quarter results, and the numbers were impressive. Both banks beat expectations on trading revenue and investment banking fees. Goldman Sachs will need to deliver similar or better results to satisfy investors.
Goldman’s Wall Street Reliance
Unlike its more diversified competitors, Goldman Sachs heavily relies on revenue from its Wall Street activities. While this has led to exceptional performance in boom times, it also means the company is more vulnerable during market downturns.
Wealth Management as Growth Catalyst
Having pivoted away from retail banking, Goldman Sachs is looking to its asset and wealth management division for growth. This business segment could reap the benefits of buoyant markets, but it’s also been affected by past write-downs related to commercial real estate.
Exodus of Senior Leaders
Solomon may face questions about the recent departures of key executives, including global treasurer Philip Berlinski and co-head of the global financing group Beth Hammack. These shakeups could signal potential challenges within the company.
Benchmark Comparisons
Keep an eye on JPMorgan, Citigroup, and Wells Fargo’s recently released quarterly results. Their performance will provide context for Goldman Sachs’ upcoming report.
Stay Tuned
The LA News Center will continue to monitor the situation and provide updates as they become available. So, mark your calendars for Monday and buckle up for Goldman Sachs’ earnings reveal.
Data sourced from: cnbc.com
