Goldman Sachs

Goldman Sachs’s strategy to refocus on its core Wall Street operations continues to pay off. Goldman’s second-quarter revenue increased 17% from a year ago to $12.73 billion, led by its asset and wealth management business, where it manages investments for large institutional clients and wealthy individuals, and an increase in investment banking fees. Goldman’s overall profit increased 150% from a year ago, when the bank was in the middle of a pullback from consumer lending, to $3.04 billion. Goldman has been undergoing a strategy shift, exiting consumer-lending after incurring billions of dollars in losses. The bank is instead refocusing on its core businesses of dealmaking and trading while growing its asset and wealth management division. Investment banking revenue was $1.73 billion, up 21% from a year ago, led by big increases in debt and equity underwriting revenue. Still, it was down from Goldman’s first quarter this year and the rise […]

Goldman Sachs’ (GS) Q1 results showed a “a less distracted and a more profitable” company, which will likely lead to an improved stock valuation, BofA Securities said in a note to clients emailed Tuesday. The results “provided a credible proof point for our positive investment thesis on the stock,” BofA said. “A more streamlined business mix and sharpened management focus should lead to better financial outcomes and has the potential to drive upside earnings surprises, in our view,” it added. Goldman reported Q1 earnings Monday of $11.58 per diluted share, up from $8.79 a year earlier. Analysts polled by Capital IQ expected $8.68. Revenue for the quarter, expressed as the sum of noninterest income and net interest income, was $14.21 billion, up from $12.22 billion a year earlier. Analysts expected $12.93 billion. Goldman shareholders will also get exposure to cyclical and secular themes, BofA said. “We believe GS shares offer

By Ciara Linnane AI is already creating an ecosystem of activity in Goldman’s investment-banking and markets businesses Goldman Sachs is expecting the development of artificial-intelligence technologies to create strong demand for infrastructure that will require financing and thus become a major tailwind for its business. Speaking to analysts on the company’s earnings call on Monday, Chief Executive David Solomon said AI is already creating an ecosystem of activity in Goldman’s (GS) investment-banking and markets businesses. “I actually think it’s a very constructive runway of opportunity sets for our clients as people reposition businesses, and we’re talking about a level of scale that is candidly … unprecedented,” Solomon said, according to a FactSet transcript. The opportunity will stretch out over the next five to 10 years and include investment by governments as they move to create infrastructure. For Goldman itself, AI is expected to create productivity and efficiency gains, he said.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We think GS is an attractive constituent in the financial sector given our view of a rebound in the capital markets, and the firm’s franchise strength in asset management. We raise our target by $20 to $450 using a forward P/E of 11.8x, a wider risk premium than the three-year historic average at 10.4x. We lift our 2024 EPS estimate by $3.60 to $38.00 and 2025’s by $2.15. GS posted Q1 EPS of $11.58, $2.94 above consensus, and revenue rose 16% Y/Y. Our revenue forecast is $51.8B in 2024 and $53.9B in 2025. Global Banking & Markets (18% ROE) delivered 15% Y/Y revenue growth, with significantly higher debt underwriting (+38% Y/Y), equity underwriting (+45%), and advisory (+24%). Outsize growth in the segment was seen in both equities

The following is a summary of the The Goldman Sachs Group, Inc. (GS) Q1 2024 Earnings Call Transcript: Financial Performance: The Goldman Sachs Group reported net revenues of $14.2 billion and net earnings of $4.1 billion in Q1 2024, resulting in earnings per share of $11.58. The common equity tier-1 ratio stood at 14.7% at the end of the first quarter, with the company returning $2.4 billion to shareholders, including common stock repurchases of $1.5 billion and common stock dividends of $929 million. The total loan portfolio at quarter-end was $184 billion, with a provision for credit losses of $318 million. The company’s Global Banking & Markets division generated revenues of $9.7 billion in Q1, resulting in an 18% return on equity. Asset & Wealth Management division’s revenues stood at $3.8 billion, marking an 18% YoY increase. Business Progress: Goldman Sachs experienced a revival in new issue market access in

Goldman Sachs Bought Back 3.9 Million Shares for $1.5 Billion During 1Q.

Goldman Sachs’ debt underwriting topline performance was one of the main drivers of the 32% increase the lender reported in 1Q investment banking fees. The U.S. bank’s debt underwriting revenue climbed 38% from the year-ago period, and 77% from the prior quarter. At the same time, Goldman Sachs’ revenue from debt investments declined both sequentially and on a year-ago comparison basis to $345 million, reflecting lower net interest income due to a reduction in the debt investments balance sheet. The bank’s debt investments have been volatile over the past year amid net mark-downs in real estate. Shares rise 4% to $405.25 in pre-market trading.

Oppenheimer analyst Chris Kotowski maintains Goldman Sachs Gr (NYSE:GS) with a Outperform and lowers the price target from $506 to $446.

By William Watts ‘It will destroy employment in some areas. There will be parts of the labor markets where tasks can be replaced. And to a degree that is going to result in reduced employment there. But then you’ll also find other ways of innovating and creating more jobs somewhere else.’Jan Hatzius, chief economist, Goldman Sachs That’s Jan Hatzius, chief economist at Goldman Sachs Group, offering his views on the impact that artificial intelligence will have on the jobs market in an interview with CNN. Goldman Sachs (GS) has previously estimated that AI could lead to the automation of as many as 300 million full-time jobs around the world, CNN noted. Hatzius told the cable news channel that AI is “very, very likely” to be a productivity enhancer for the economy. Goldman last year upgraded its long-term forecast for U.S. gross domestic product in part due to expectations around productivity.

By Steve Gelsi ‘The lower part of the economy is a little softer,’ says David Solomon ‘I’ve talked to a bunch of CEOs that operate businesses that would have good insight into what I’ll call a more paycheck-to-paycheck kind of spending behaviors. I think that in the last few months you see a pattern of those behaviors tightening up, which means that the lower part of the economy is a little softer.’David Solomon, chief executive, Goldman Sachs The U.S. consumer continues to feel squeezed with less purchasing power than they had four years ago, especially among people living paycheck to paycheck, Goldman Sachs Group Inc. Chief Executive David Solomon said Tuesday. While the service economy is strong, and the upper half of the economy in the U.S. remains robust, Solomon said the average American feels strained by prices that remain higher than before the COVID-19 pandemic, he said at the

By Steve Gelsi Analyst recommends GS, JEF, as well as BAC, C, JPM, MS and USB Oppenheimer analyst Chris Kotowski has reiterated overweight ratings on Goldman Sachs Group Inc. and Jefferies Financial Group Inc. as standouts among a class of relatively cheap big-bank stocks. “You wouldn’t know it from the stock market…but big banks did fine in 2023,” Kotowski said in a research note published Tuesday. He’s recommending that investors “in particular” overweight their exposure to Goldman Sachs Group Inc. (GS) and Jefferies (JEF), but the entire group including Bank of America Corp. (BAC), Citigroup Inc. (C), JPMorgan Chase & Co. (JPM), Morgan Stanley (MS) and U.S. Bancorp (USB) “remains significantly undervalued,” he said. The positive note from Oppenheimer came as Morgan Stanley analyst Analyst Betsy Graseck said she is “back & bullish” on big banks. Also read: Morgan Stanley upgrades Bank of America, Goldman Sachs and Citi on ‘lightened