Banking, finance, and taxes

Goldman Sachs Had Q1 Despite Excellent Bottom Line Beat

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Goldman Sachs Group Inc. (NYSE: GS) reported its most recent quarterly results before the markets opened on Monday. The investment bank said that it had $5.71 in earnings per share (EPS) and $8.81 billion in revenue, which compares with consensus estimates of $4.89 in EPS and $9.04 billion in revenue. The same period of last year reportedly had $6.95 in EPS and $10.04 billion in revenue.

During the quarter, return on equity was 11.1%, while return on tangible equity was 11.7%.

One of the highlights from the quarter was that Investing & Lending net revenues included record quarterly net interest income in debt securities and loans of $835 million.

Goldman Sachs also ranked first in worldwide completed mergers and acquisitions for the year to date, which contributed to strong net revenues in Financial Advisory of $887 million. The firm also ranked first in worldwide equity and equity-related offerings and common stock offerings for the year to date.

In terms of its segments, Goldman Sachs reported:

  • Investment Banking revenues increased 1% year over year to $1.81 billion.
  • FICC revenues decreased 11% to $1.84 billion.
  • Equities revenues decreased 24% to $1.77 billion.
  • Investing & Lending revenues decreased 14% to $1.84 billion.
  • Investment Management revenues decreased 12% to $1.56 billion.

The Basel III Advanced common equity tier 1 ratio for the quarter was 13.4%. Also at the end of the quarter, book value per share was $209.07 and tangible book value per share was $198.25.

The investment house offered no guidance in the report. However, consensus estimates call for $5.49 in EPS and $9.33 billion in revenue for the current quarter.

Shares of Goldman Sachs were last seen down 2.5% at $202.68, in a 52-week range of $151.70 to $262.25. The consensus price target is $230.43.


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