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Goldman Sachs Earnings Partially Beat Expectations, GS Stock Doesn’t React, Down Less 1%

This week, many financial organizations are releasing their first-quarter earnings. Among them are JPMorgan Chase & Co (NYSE: JPM), Wells Fargo & Co (NYSE: WFC), and Goldman Sachs Group Inc (NYSE: GS). Goldman Sachs has delivered its earnings report in the morning today.

It turned out Goldman Sachs earnings have both beat and missed analysts’ expectations. The bank’s total revenue made up $8.74 billion in comparison with the $7.84 billion estimate. Its investment banking revenue of $2.18 billion has also surpassed expectations of $1.54 billion. However, Goldman Sachs has not managed to live up the predictions on diluted earnings per common share (EPS). In the first quarter of 2020, EPS made up $3.11, versus the $3.28 estimate. In comparison, in the year-ago period EPS was $5.71.

Godman Sachs CEO David Solomon said:

“Our quarterly profitability was inevitably affected by the economic dislocation. As public policy measures to stem the pandemic take root, I am firmly convinced that our firm will emerge well-positioned to help our clients and communities recover.”

Goldman Sachs has also improved its net revenues in Global Markets. They made up $5.16 billion for the first quarter of 2020, which is 28% higher than the first quarter of 2019 and 48% higher than the fourth quarter of 2019. But the bank saw a decrease in net revenues in Asset Management. In the period considered, they were $96 million, while in the year-ago figures were $1.79 billion. The Q4 2019 net revenues in Asset Management totaled $3.00 billion.

On Tuesday, Goldman Sachs stock closed at $178.23 per share, which means it is down 22% from the price at the beginning of 2020. Today, GS stock opened at $170.63, but later rose. At the moment of writing, Goldman Sachs stock is down again, losing 0.27% and trading at $177.75.

At the beginning of the year, Goldman Sachs stock was somewhere about $245.21. The plunge is a result of the coronavirus pandemic that has negatively affected all kinds of stocks.

Citigroup Inc (NYSE: C) and Bank of America (NYSE: BAC) have reported rather controversial first-quarter results.

Citigroup’s earnings per share made up $1.05 on revenue of $20.73 billion. The forecast was a bit different, $1.59 on revenue of $19 billion. In comparison, in the first quarter of last year, EPS was $1.87 on revenue of $18.58 billion. In Q4 2019, EPS was $2.15 on the $18.38 billion revenue.

As for the stock, Citigroup shares have plunged by 43% from the beginning of the year. The highest mark was $83.11 on January 14. As of today, the opening price was $43.37. At the moment of writing, Citigroup stock is 4.10% down, at 43.56 per share.

Bank of America can’t boast great performance as well. Its first-quarter profit decreased by 45% as the company set aside $3.6 billion for loan-loss reserves because of the COVID-19 outbreak. While its $22.8 billion revenue met expectations, its profit of $4.01 billion, or 40 cents a share did not, as analysts predicted $0.46 per share.

Bank of America stock closed at $23.73 yesterday but dropped to $22.16 today. At the moment of writing, it makes up $22.22 per share, or 6.36% down.

Goldman Sachs Earnings Partially Beat Expectations, GS Stock Doesn’t React, Down Less 1%

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