Shares of Goldman Sachs (GS) are trading higher on Monday following the company’s first quarter earnings report, beating expectations on both the top and bottom lines. Revenue came in at $14.21 billion against analyst estimates of $12.98 billion. Additionally, the company’s adjusted earnings per share (EPS) reached $11.58, surpassing the expected $8.81 per share. Goldman Sachs also reported a 28% year-over-year increase in net income for the quarter, further buoying the stock price.
Yahoo Finance’s Madison Mills breaks down the details.
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This post was written by Angel Smith
Video Transcript
SEANA SMITH: Let’s get to our big story today. And it’s time for today’s stock to watch, that is Goldman Sachs’ shares on the move to the upside. Look at that gain of just about 4%, climbing here after posting an earnings beat in the first quarter, reporting a 28% jump in net income from a year ago. Yahoo Finance’s Madison Mills standing by here in the newsroom at the NASDAQ with the latest on that move. Maddie.
MADISON MILLS: Well, we have this huge surge in profits that you mentioned, Seana, of 28%. And it’s nearly a $1-billion beat compared with Wall Street estimates, really beating across the board for all of those estimates here. So why exactly is that? Well, I want to pull out one specific data point here. We have fixed income currency and commodities trading and sales. That number came in at $4.3 billion. The estimate was only $3.6 billion.
So why this huge success that we’re seeing here? Well, they’re refocusing on their core Wall Street business and having a more predictable approach to their money management unit. This coming after they’ve faced a lot of criticism, particularly throughout 2023, about defocusing on their retail banking unit in particular. The bank has also faced a lot of general criticism and challenges. A lot of executives have been leaving over the past year.
Obviously, you have a difficult macro backdrop with a decline in overall deal making. So that makes this beat even more of a win for Goldman Sachs, and particularly CEO David Solomon as he has had the difficulty leading the charge as all of these challenges have amassed for the bank. Now, just to compare to some of the other earnings that we’re going to be getting in, equities trading for Goldman coming in better than J.P. Morgan and is expected to be better than Morgan Stanley, which we’re going to get later on this week. And again, I want to emphasize that this is the beat across the board totaling at least a billion dollars.
SEANA SMITH: All right, Madison Mills, thanks so much for breaking that down for us. Again, Goldman here, at least ahead of the opening bell, trading to the upside on the heels of the better-than-expected results.
Source: finance.yahoo.com
