Goldman Sachs Looks Like Golden Slacks (GS)

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Goldman Sachs (NYSE: GS) has managed to post $7.01 EPS in its fourth quarter report.  First Call had estimates of $6.61 EPS and we had a whisper number somewhere in the $7.00 neighborhood.  Annualized return on equity was 34.6% for the fourth quarter of 2007. Book value per common share increased 25% to $90.43 in 2007.  Assets under management rose $868 billion.

The following are the individual metrics inside the company for the quarter:

  • Net revenues in Investment Banking were $1.97 billion, 47% higher than the fourth quarter of 2006 and 8% lower than a particularly strong third quarter of 2007.  Net revenues in Trading and Principal Investments were $6.93 billion, 4% higher than the fourth quarter of 2006 and 16% lower than the third quarter of 2007. Net revenues in Asset Management and Securities Services were $1.84 billion, 29% higher than the fourth quarter of 2006 and 6% lower than the third quarter of 2007. Non-compensation expenses were $2.41 billion, 26% higher than the fourth quarter of 2006 and 12% higher than the third quarter of 2007.

Shares are up almost 2% at $212.90 in pre-market trading.  Its 52-week trading range is $157.38 to $250.70.  This one has managed to dodge the big bullet in the sub-prime mess as it had been hedged.  Maybe it really should change its name to Golden Slacks.

Jon C. Ogg
December 18, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he produces the SPECIAL SITUATION newsletter and he does not own securities in the companies he covers.