Goldman Sachs Group Inc. (NYSE: GS) reported fourth-quarter and full-year 2019 results before markets opened Wednesday. The investment bank reported diluted quarterly earnings per share (EPS) of $4.69 on net revenue of $9.96 billion. In the same period a year ago, the bank reported EPS of $6.04 on revenue of $8.08 billion. Fourth-quarter results also compare to the consensus estimates for EPS of $5.47 on revenue of $8.51 billion.
For the full fiscal year, Goldman reported revenues of $36.55 billion and EPS of $21.03, compared to 2018 revenues of $36.62 billion and EPS of $25.27. Analysts had been looking for EPS of $21.75 and revenues of $35.07 billion. The bank noted that annual earnings included a $3.16 per share charge ($1.1 billion) related to litigation.
Fourth-quarter revenues were up 23% year over year, but diluted EPS was down 22%. For the full year, revenues were flat and EPS fell by 17%.
Book value per common share ended the year essentially flat at $218.52, and annualized return on equity for the year came in at 10%. Net income fell by 20% to $7.9 billion. For the quarter, net income fell by 26% year over year to $1.72 billion.
Investment banking revenues fell 6% compared with the fourth quarter of last year and 7% annually. Fixed income revenues rose 33% on a quarter-over-quarter basis and 2% for the year. Trading revenue was up 33% in the quarter and 2% year over year. Asset management revenues rose by 52% for the quarter and 1% for the year, while consumer and wealth management revenues were up 8% in the quarter and 1% for the year.
The firm’s effective tax rate rose from 16.2% in 2018 to 20% for 2019. Goldman expects its 2020 effective tax rate to rise to 21%.
The bank did not offer guidance in its press release, but the consensus estimates call for first-quarter EPS of $6.16 on revenues of $9.45 billion. The EPS forecast for the 2020 fiscal year is $23.99 on revenues of $36.2 billion.
Shares traded down about 0.7% in the premarket Wednesday to $244.00, having closed on Tuesday at $245.66. The current 52-week range is $180.73 to $248.52. The consensus 12-month price target was $259.00 before results were announced.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
