Banking, finance, and taxes

What to Expect From Goldman Sachs in Q2

Chris Lange

Published: July 16, 2018 11:00 am

Last Updated: January 11, 2020 8:58 pm

Goldman Sachs Group Inc. (NYSE: GS) is scheduled to release its second-quarter earnings report before the markets open on Tuesday. Thomson Reuters has consensus estimates of $4.66 in earnings per share (EPS) and $8.74 billion in revenue. That compares with the EPS of $3.95 and $7.89 billion in revenue posted in the year-ago period.

According to the New York Times, Goldman Sachs is finally making a step toward getting a new chief executive officer. Reportedly the investment bank plans to name company President David Solomon as its next CEO.

When the firm reported first-quarter results, it posted the best equities trading results in three years, as the bank profited from the 2018 roller-coaster market. Revenue from equities trading surged 38% to $2.31 billion, trouncing the consensus analyst estimate. Investing and lending revenue rose 43% to $2.09 billion, also beating Wall Street expectations.

Excluding Monday’s move, Goldman Sachs had underperformed the broad markets, with its stock down about 11% year to date. Over the past 52 weeks, the stock is only down about 2%.

A few analysts weighed in on Goldman Sachs ahead of the report:

• JPMorgan has a Buy rating with a $280 price target.
• Keefe Bruyette & Woods has a Hold rating.
• Credit Suisse has a Neutral rating with a $280 price target.
• Oppenheimer has an Outperform rating and a $308 target.
• BMO Capital Markets has a Hold rating with a $245 target.

Shares of Goldman Sachs were last seen up about 1% at $229.11, with a consensus analyst price target of $271.50 and a 52-week trading range of $214.64 to $275.31.