Banking, finance, and taxes

Goldman Sachs Crosses the Tape With Mixed Results

Chris Lange

Published: April 19, 2016 8:05 am

Last Updated: January 13, 2020 10:37 am

Goldman Sachs Group Inc. (NYSE: GS) reported its first-quarter financial results before the markets opened on Tuesday. The company said it had $2.68 in earnings per share (EPS) on $6.34 billion in revenue. That compares to consensus estimates from Thomson Reuters of $2.45 in EPS on revenue of $6.73 billion. In the same period of last year, it posted EPS of $5.94 and $10.62 in revenue.

In the first quarter, Goldman Sachs ranked first in worldwide announced mergers and acquisitions for the year to date. At the same time, the firm also ranked first in worldwide common stock offerings for the year to date.

The firm maintained strong capital ratios and liquidity. At the end of March, the firm’s Common Equity Tier 1 ratio, as calculated in accordance with the standardized approach and the Basel III advanced approach, was 13.4% and 12.2%, respectively.

Book value per common share was $173.00 and tangible book value per common share was $163.54, both 1% higher compared with the end of 2015.

During the quarter, the firm repurchased 10 million shares of its common stock at an average cost per share of $154.44, for a total cost of $1.55 billion. Also the board of directors declared a dividend of $0.65 per common share, which will be paid on June 29 for shareholders of record on June 1.

Lloyd C. Blankfein, chairman and CEO of Goldman Sachs, commented:

The operating environment this quarter presented a broad range of challenges, resulting in headwinds across virtually every one of our businesses. Looking ahead, we will continue to focus on delivering superior service to our clients and managing our business efficiently, which remain essential to generating shareholder value over the long term.

Shares of Goldman Sachs closed Monday at $159.02, with a consensus analyst price target of $188.00 and a 52-week trading range of $139.05 to $218.77. Following the release of the earnings report, the stock was initially flat at $158.98 in early trading indications Tuesday.