Goldman Sachs Q2 Earnings Preview: Analysts Expect $8.70 EPS, 16.4% Revenue Growth Amidst Challenges

New York City, New York, USA United States of America
Analysts have revised EPS estimate upwards by 0.2% due to solid growth in market revenues
Declining Net Interest Income (NII) and increasing expenses are concerns for investors
Global M&A bounced back, driving investment banking fees growth by 34.2%
Goldman Sachs expected to report Q2 earnings of $8.70 per share and $12.68 billion in revenues
Goldman Sachs Q2 Earnings Preview: Analysts Expect $8.70 EPS, 16.4% Revenue Growth Amidst Challenges

Goldman Sachs, an influential global investment bank, is set to release its second-quarter earnings report on Monday, July 15. The financial powerhouse has been making headlines due to its strong performance in the investment banking and trading sectors. Let's delve into what Wall Street analysts anticipate from this much-awaited report.

According to various sources, Goldman Sachs is predicted to post quarterly earnings of $8.70 per share, reflecting a significant increase of 182.5% compared to the same period last year. Revenues are forecasted to be $12.68 billion, representing a substantial year-over-year increase of 16.4%. These figures suggest that Goldman Sachs has been able to weather the economic storm and thrive in a challenging market environment.

The consensus estimate for earnings per share (EPS) has undergone an upward revision of 0.2% over the last month, indicating that analysts have become increasingly optimistic about the bank's financial performance. This positive sentiment is likely due to solid growth in market revenues driven by decent client activity during the second quarter.

Moreover, global mergers and acquisitions (M&As) bounced back in the second quarter of 2024, driving investment banking fees growth by 34.2% from the previous year. This trend is expected to continue, as companies seek to consolidate their positions in a rapidly evolving business landscape.

Despite these promising figures, it's essential to remember that Goldman Sachs faces challenges such as declining Net Interest Income (NII) and increasing expenses. The NII revenue decline of -1.49 billion is a concern for investors, as it could impact the bank's profitability in the long run.

In conclusion, Goldman Sachs' second-quarter earnings report is expected to provide valuable insights into the bank's financial health and its ability to navigate a complex economic landscape. As always, it is crucial for investors to approach this news with a critical and informed perspective.


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Confidence

90%

Doubts
  • It is unclear if there are any other significant challenges Goldman Sachs may be facing aside from declining NII and increasing expenses
  • The article does not provide specific information on the causes of the decline in Net Interest Income (NII)

Sources

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Goldman Sachs is set to report second-quarter earnings — here’s what Wall Street expects

CNBC News Hugh Son Monday, 15 July 2024 04:01
  • Unique Points
    • Goldman Sachs is scheduled to report second-quarter earnings before the opening bell on Monday.
    • CEO David Solomon has wagered that asset and wealth management can be a growth engine for the bank.
  • Accuracy
    • Earnings are expected to be $8.34 per share according to LSEG.
    • Revenue is expected to be $12.46 billion according to LSEG.
    • Trading Revenue: Fixed Income - $2.96 billion, Equities - $3.17 billion.
    • Investing Banking Revenue is expected to be $1.80 billion according to StreetAccount.
    • Goldman Sachs is the most reliant on investment banking and trading to generate revenue among the six biggest US banks.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Gear Up for Goldman (GS) Q2 Earnings: Wall Street Estimates for Key Metrics

Yahoo Finance Zacks Equity Monday, 15 July 2024 09:57
  • Unique Points
    • Goldman Sachs is predicted to post quarterly earnings of $8.70 per share, reflecting an increase of 182.5% compared to the same period last year.
    • Revenues are forecasted to be $12.68 billion, representing a year-over-year increase of 16.4%.
    • There has been an upward revision of 0.2% in the consensus EPS estimate for the quarter.
    • Analysts collectively project “Net Revenues - Global Banking & Markets - Equities” to reach $3.05 billion, a change of +2.8% from the prior-year quarter.
    • The consensus estimate for “Efficiency Ratio” stands at 65.9%, in contrast to the year-ago figure of 78.4%.
  • Accuracy
    • The consensus estimate for EPS is $8.70, indicating a surge of 182.5% from the prior-year quarter's reported figure.
    • The Zacks Consensus Estimate for second-quarter revenues is $12.68 billion, a 16.4% increase from the previous year.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

86%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Goldman Sachs (GS) Pre Q2 Earnings: To Buy or Stay Clear

Yahoo Finance Riya Anand Monday, 15 July 2024 09:59
  • Unique Points
    • Goldman Sachs is scheduled to release second-quarter 2024 earnings on Jul 15.
    • GS stock reached a new 52-week high of $478.89 on Jul 10.
    • The Zacks Consensus Estimate for second-quarter revenues is $12.68 billion, a 16.4% increase from the previous year.
    • For quarterly earnings, the consensus estimate has been revised to $8.70, indicating a surge of 182.5% from the prior-year quarter’s reported figure.
    • GS is expected to have recorded solid growth in market revenues driven by decent client activity during second-quarter 2024.
    • Global mergers and acquisitions (M&As) bounced back in second-quarter 2024, driving IB fees growth by 34.2% from the previous year.
  • Accuracy
    • ]Goldman Sachs is scheduled to report second-quarter earnings before the opening bell on Monday.[
    • Revenues are forecasted to be $12.46 billion according to LSEG.
    • It is projected by analysts that the Common equity tier 1 capital ratio will reach 15.8%.
  • Deception (50%)
    The article contains selective reporting as it only reports details that support the author's position about Goldman Sachs' expected earnings and revenues for Q2 2024. The author does not mention any potential negative factors that could impact the company's performance. Additionally, there is editorializing in the article with phrases like 'decent client activity,' 'solid financial performance,' and 'buoyant markets.' These phrases are the author's opinions and not facts.
    • A stabilizing macro-environment, along with Goldman’s leadership position in worldwide announced and completed M&As, equity and equity-related offerings and common stock offerings, is likely to have lent it an edge over its peers.
    • For quarterly earnings, in the past month, the consensus estimate has been revised 1.9% downward to $8.70... The projection suggests a surge of 182.5% from $3.08 reported in the prior-year quarter.
    • Goldman has a decent earnings surprise history... The company’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an earnings surprise of 22.78%, on average.
    • The Goldman Sachs Group, Inc. GS is slated to release second-quarter 2024 earnings on Jul 15, before the opening bell... Should you buy it ahead of its second-quarter numbers?
    • The Zacks Consensus Estimate for second-quarter revenues is pegged at $12.68 billion, calling for a 16.4% rise from the year-ago quarter’s reported figure.
  • Fallacies (85%)
    The author makes an appeal to authority by citing Zacks Investment Research multiple times without explicitly stating their qualifications or expertise in the field. This does not necessarily mean that the information provided is incorrect, but it can be seen as a way to sway the reader's trust without providing sufficient evidence. The score is reduced because this is an informal fallacy and there are no formal fallacies or dichotomous depictions present in the article.
    • ][The Zacks Consensus Estimate for second-quarter revenues is pegged at $12.68 billion, calling for a 16.4% rise from the year-ago quarter's reported figure.][][The Zacks Consensus Estimate for IB fees of $1.92 billion indicates 34.2% growth from the prior-year quarter's actuals.][][The Zacks Consensus Estimate for NII's revenues is pegged at $1.49 billion, suggesting an 11.4% plunge from the prior-year quarter's reported figure.][][The company's valuation looks somewhat stretched compared with its range and the industry average.]
    • The author uses inflammatory rhetoric by stating 'harsh scrutiny by antitrust regulators and persistent geopolitical tensions have continued to act as headwinds.' This is an emotional appeal that can sway the reader's opinion without providing concrete evidence. However, it does not significantly impact the overall analysis of the article and there are no formal fallacies or dichotomous depictions present.
    • The author states 'Potential investors should exercise caution over concerns related to elevated expenses and high funding costs.' This is a valid statement based on the information provided in the article, but it can be seen as a way to instill fear in the reader and potentially influence their investment decisions. It does not constitute a formal fallacy or dichotomous depiction.
    • The author states 'As it cleared the 2024 stress test, the company intends to increase its quarterly dividend by 9% to $3.00 per share.' This is a valid statement based on the information provided in the article, but it does not constitute a formal fallacy or dichotomous depiction.
    • The author states 'GS also continues to reward shareholders handsomely.' This is a valid statement based on the information provided in the article, but it does not constitute a formal fallacy or dichotomous depiction.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication