Banking, finance, and taxes

What to Expect When Goldman Sachs and Citigroup Report Wednesday Morning

Chris Lange

Published: April 14, 2020 12:57 pm

Earnings season is underway with JPMorgan and Wells Fargo earnings already in the books. Although many are writing this earnings season off, the fundamentals expressed here will actually be meaningful as a starting point for economic recovery. Banks will play a critical role in this.

Coming up next are Goldman Sachs Group Inc. (NYSE: GS) and Citigroup Inc. (NYSE: C), which are each reporting their first-quarter financial results before the opening bell on Wednesday.

24/7 Wall St. has included what analysts are saying about each of these banks, as well as their recent trading histories. Still more banks are coming out with earnings later this week, as this earnings reporting season kicks.

Goldman Sachs

Analysts are calling for $3.35 in earnings per share (EPS) and $7.9 billion in revenue. The same period of last year reportedly had $5.71 in EPS and $8.81 billion in revenue.

Goldman Sachs’s tangible book value per share was $205.15 at the end of 2019, and book value per share was $218.52 at the same time.

Here’s what a few analysts said about Goldman Sachs ahead of the report:

• JMP Securities rates it as Market Perform with a $270 price target.
• The Barclays Hold rating comes with a $236 target price.
• Piper Sandler has an Overweight rating with a $214 target.
• D.A. Davidson has a Neutral rating and a $165 price target.
• Deutsche Bank has a Buy rating with a $227 target price.
• Wells Fargo’s Overweight rating comes with a $210 target.

Excluding Monday’s move, Goldman Sachs stock had underperformed the broad markets with a retreat of about 22% year to date. In the past 52 weeks, the share price is down closer to 11%.

Goldman Sachs stock traded down nearly 1% to $177.62 on Tuesday, in a 52-week range of $130.85 to $250.46. The consensus price target is $206.19.

Citigroup

The consensus forecast is $1.04 in EPS and $19.01 billion in revenue. In the first quarter of last year, the company said it had $1.87 in EPS and $18.58 billion in revenue.

Citigroup’s tangible book value per share was $70.39 at the end of the previous quarter, and book value per share was $82.90.

A few analysts weighed in on Citigroup prior to the report:

• UBS’s Buy rating comes with a $50 price target.
• Piper Sandler has an Overweight rating with a $56 target.
• Deutsche Bank has a Neutral rating with a $61 price target.
• Wells Fargo rates it as Overweight with a $74 target price.
• Oppenheimer has an Outperform rating and a $93 price target.
• Morgan Stanley has an Overweight rating with a $63 price target.

Overall, Citigroup stock has underperformed the broad markets, with a pullback of about 41% year to date. In the past 52 weeks, the share price is down 29%.

Citigroup stock was down about 4% at $44.86. The 52-week range is $32.00 to $83.11, and the consensus price target is $62.77.