Back to top

Image: Bigstock

Goldman (GS) Q4 Earnings Beat on Higher Revenues

Read MoreHide Full Article

Have you been eager to see how The Goldman Sachs Group, Inc. (GS - Free Report) performed in Q4 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 $5.08, significantly beating the Zacks Consensus Estimate of $4.76. Higher revenues and 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 pessimism prior to the earnings release. The Zacks Consensus Estimate has gone down slightly over the last 7 days.

However, Goldman has a decent earnings surprise history. Before posting earnings beat in Q4, the company delivered positive surprises in all the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 19.4% in the trailing four quarters.
 

Revenue Came in Higher Than Expected   
 

Goldman posted revenues of $8.2 billion, beating the Zacks Consensus Estimate of $7.4 billion. Moreover, it compared favorably with the year-ago number of $7.3 billion.

Key Stats to Note:

  • Goldman ranked  first  in  worldwide  announced  and completed mergers  and acquisitions for 2016
  • Goldman repurchased 7.6 million shares of its common stock for a total cost of $1.50 billion during the quarter
  • Annualized return on average common shareholders’ equity (ROE) was recorded at 11.4%

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) 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.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How the Market Reacted So Far

Following the earnings release, Goldman shares were down slightly in the pre-trading session. This is in line 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!

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?

Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Goldman Sachs Group, Inc. (GS) - free report >>

Published in