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Goldman Sachs (GS) Q2 Earnings Beat; Costs Falls

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Have you been eager to see how The Goldman Sachs Group, Inc. (GS - Free Report) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this NY-based popular bank’s earnings release this morning:

An Earnings Beat

Goldman came out with earnings per share of $3.72, significantly beating the Zacks Consensus Estimate of $3.01. Lower expenses were primarily responsible for the beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Goldman depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last 7 days.  

Also, Goldman has a decent earnings surprise history. Before posting earnings beat in Q2, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 12.58% in the trailing four quarters.

GOLDMAN SACHS Price and EPS Surprise

GOLDMAN SACHS Price and EPS Surprise | GOLDMAN SACHS Quote

Revenue Came in Higher Than Expected   

Goldman posted revenues of $7.9 billion, outpacing the Zacks Consensus Estimate of $7.6 billion. However, it compared unfavorably with the year-ago number of $9.1 billion.

Key Stats to Note:

  • Goldman ranked  first  year-to-date in  worldwide  announced  mergers  and acquisitions  
  • Goldman repurchased 11.1 million shares of its common stock for a total cost of $1.74 billion during the quarter
  • Annualized return on average common shareholders’ equity (ROE) was recorded at 8.7%

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Goldman. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

How the Market Reacted So Far

Following the earnings release, Goldman shares were down slightly in the pre-trading session. This is in contrary to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have not considered the results in their favor. However, the full-session’s price movement may indicate a different picture.

Check back later for our full write up on this Goldman earnings report!

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