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.

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.