Goldman Sachs Delivers on Earnings and Book Value Growth

Banking, finance, and taxes

Published: April 17, 2014 8:20 am

Goldman Sachs Group Inc. (NYSE: GS) is still a new Dow Jones Industrial Average component, and now the bulge bracket investment banking firm — and bank holding company without any retail banking operations — is out with its first-quarter earnings for 2014.

Earnings came in at $4.02 per share, and revenues were $9.33 billion. Thomson Reuters had a consensus of $3.45 in earnings per share and a consensus of $8.7 billion in revenues. While the numbers came in above expectations, they compare to earnings of $4.29 per share and revenue of $10.09 billion in the same March quarter a year ago. Its total capital was $244.73 billion and total assets were $916 billion.

Operating expenses were $6.31 billion, 6% lower than the first quarter of 2013 and 21% higher than the fourth quarter of 2013.

ALSO READ: Jefferies Stock Picks That Could Jump From an Earnings Surprise

Goldman Sachs had a quarter end book value of $154.69 per share and a tangible book value per share of $145.04, versus a $157.22 close. Goldman ended the quarter with a Basel Tier 1 capital ratio of 16.3%, as well as a Basel Tier 1 common equity ratio of 14.6%. Segment revenue was as follows:

Institutional Client Services: $4.45 billion, or 13% lower than the first quarter of 2013 and 31% higher than the fourth quarter of 2013
Investment Banking: $1.78 billion, the best since 2007
Equities Rev: $1.6 billion
Investment Management: $1.57 billion, and assets under supervision increased to a record $1.08 trillion — and 20% higher than the first quarter of 2013 and 2% lower than the fourth quarter of 2013
Investing and Lending: $1.53 billion, or 26% lower than both the first quarter of 2013 and the fourth quarter of 2013
FICC: $2.85 billion

Goldman Sachs closed up 1.5% at $157.22 on Wednesday, against a 52-week range of $137.29 to $181.13. Its consensus analyst target price is $176.87, and shares were indicated up close to 2% at $160.25 in early trading Thursday.

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.