Banking, finance, and taxes
Goldman Sachs Earnings... Escaping The Hangman Under Book Value (GS)
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Fourth quarter net revenues were $6.05 billion, and net earnings were $1.01 billion or $1.84 EPS. The annualized return on equity was 5.8% for the fourth quarter. Management talked about the year being dominated by global macro-economic concerns, impacted risk tolerance of clients, and other challenges. Thomson Reuters had estimates of $1.24 EPS and 6.54 billion in revenues.
Here were the quarterly highlights by unit:
The good news about this quarter is that the investment bank made money at a time when estimates were coming down extremely fast. The bad news is that the quarter was far from an attractive one compared to normalized quarters.
Book value was $130.31 per common share and its tangible book value was $119.72 per common share. Unfortunately, book value in banking today is a ceiling rather than a floor. Shares are indicated up 1.3% at $98.99 against a 52-week range of $84.27 to $171.49.
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