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Goldman's (GS) Q1 Earnings & Revenues Beat Estimates

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Have you been eager to see how The Goldman Sachs Group, Inc. (GS - Free Report) performed in Q1 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 $6.95, easily surpassing the Zacks Consensus Estimate of $5.67. Further, the figure compared favorably with earnings of $5.15 in the prior-year quarter. Higher revenues were primarily responsible for this earnings 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 seven days.

Also, Goldman has a decent earnings surprise history. Before posting earnings beat in Q1, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 11.42% in the trailing four quarters.
 

Revenue Came in Higher Than Expected
 
Goldman posted revenues of $10 billion, outpacing the Zacks Consensus Estimate of $8.9 billion. Further, it compared favorably with the year-ago number of $8 billion.

Key Stats to Note:

 

  • Goldman recorded highest revenues in the last three years and second highest quarterly results in debt underwriting
  • Goldman repurchased 3 million shares of its common stock for a total cost of $800 million during the quarter
  • Annualized return on average common shareholders’ equity (ROE) was recorded at 15.4% for the first quarter
  • Fixed Income, Currency and Commodities Client Execution (FICC) revenues jumped 23% year over year in the quarter, recording highest quarterly results in three years

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.

(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 up nearly 1% 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 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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