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Goldman (GS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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Goldman Sachs (GS - Free Report) reported $10.9 billion in revenue for the quarter ended June 2023, representing a year-over-year decline of 8.2%. EPS of $3.08 for the same period compares to $7.73 a year ago.
The reported revenue represents a surprise of +1.01% over the Zacks Consensus Estimate of $10.79 billion. With the consensus EPS estimate being $3.25, the EPS surprise was -5.23%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Goldman performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Standardized Capital Rules - Common equity tier 1 capital ratio: 14.9% versus the four-analyst average estimate of 14.57%.
Efficiency Ratio: 78.4% versus the four-analyst average estimate of 70.17%.
Assets Under Supervision (AUS) - Total: $2714 billion compared to the $2726.7 billion average estimate based on four analysts.
Leverage ratio: 5.6% compared to the 5.57% average estimate based on three analysts.
Net Revenues- Asset & Wealth Management- Management and other fees: $2.35 billion versus the six-analyst average estimate of $2.36 billion.
Net Revenues- Asset & Wealth Management- Private banking and lending: $874 million compared to the $711.27 million average estimate based on six analysts.
Net Revenues- Platform Solutions- Transaction banking and other: $82 million versus $76.80 million estimated by six analysts on average.
Net Revenues- Global Banking & Markets- FICC: $2.71 billion versus the six-analyst average estimate of $3.05 billion. The reported number represents a year-over-year change of -24.8%.
Net Revenues- Asset & Wealth Management- Debt investments: $197 million versus the six-analyst average estimate of $345.73 million.
Net Revenues- Platform Solutions- Consumer platforms: $577 million compared to the $480.09 million average estimate based on six analysts.
Net Revenues- Global Banking & Markets- Equities: $2.97 billion compared to the $2.64 billion average estimate based on six analysts. The reported number represents a change of +3.7% year over year.
Net Revenues- Global Banking & Markets- Investment banking fees: $1.43 billion versus $1.56 billion estimated by five analysts on average.
Shares of Goldman have returned +2% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Goldman (GS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Goldman Sachs (GS - Free Report) reported $10.9 billion in revenue for the quarter ended June 2023, representing a year-over-year decline of 8.2%. EPS of $3.08 for the same period compares to $7.73 a year ago.
The reported revenue represents a surprise of +1.01% over the Zacks Consensus Estimate of $10.79 billion. With the consensus EPS estimate being $3.25, the EPS surprise was -5.23%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Goldman performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Standardized Capital Rules - Common equity tier 1 capital ratio: 14.9% versus the four-analyst average estimate of 14.57%.
- Efficiency Ratio: 78.4% versus the four-analyst average estimate of 70.17%.
- Assets Under Supervision (AUS) - Total: $2714 billion compared to the $2726.7 billion average estimate based on four analysts.
- Leverage ratio: 5.6% compared to the 5.57% average estimate based on three analysts.
- Net Revenues- Asset & Wealth Management- Management and other fees: $2.35 billion versus the six-analyst average estimate of $2.36 billion.
- Net Revenues- Asset & Wealth Management- Private banking and lending: $874 million compared to the $711.27 million average estimate based on six analysts.
- Net Revenues- Platform Solutions- Transaction banking and other: $82 million versus $76.80 million estimated by six analysts on average.
- Net Revenues- Global Banking & Markets- FICC: $2.71 billion versus the six-analyst average estimate of $3.05 billion. The reported number represents a year-over-year change of -24.8%.
- Net Revenues- Asset & Wealth Management- Debt investments: $197 million versus the six-analyst average estimate of $345.73 million.
- Net Revenues- Platform Solutions- Consumer platforms: $577 million compared to the $480.09 million average estimate based on six analysts.
- Net Revenues- Global Banking & Markets- Equities: $2.97 billion compared to the $2.64 billion average estimate based on six analysts. The reported number represents a change of +3.7% year over year.
- Net Revenues- Global Banking & Markets- Investment banking fees: $1.43 billion versus $1.56 billion estimated by five analysts on average.
View all Key Company Metrics for Goldman here>>>Shares of Goldman have returned +2% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.