Apr. 17, 2014, 8:05 AM
- EPS of $4.02 compares with $4.29 a year ago and $4.60 in Q4. Revenue of $9.33B falls from $10.09B. Annualized ROE of 10.9% in Q1.
- Investment banking revenue of $1.78B up 13% Y/Y, with financial advisory revenue of $682M up 41%, equity underwriting revenue of $437M up12%, debt underwriting of $660M down 5%.
- Institutional client services revenue of $4.446B down 13% Y/Y, with FICC revenue of $2.85B down 11%, not terribly out of line with dim expectations, but Morgan Stanley and BofA managed to report gains in this segment (Citi and JPMorgan had declines). Given the fixed to shrinking pie size, Goldman lost some share during the Q.
- Investing & Lending revenue of $1.529B downb 26% Y/Y. Investment management revenue of $1.152B up 9%.
- Operating expenses of $6.31B off 6% from a year ago, with compensation and benefits expense of $4.01B down 8%. Compensation and benefits as a percentage of revenue of 43% is flat. Total headcount down 1% during the quarter.
- CC at 9:30 ET
- GS +2% premarket
Apr. 17, 2014, 7:43 AM
- Goldman Sachs (GS): Q1 EPS of $4.02 beats by $0.59.
- Revenue of $9.33B (+92367.8% Y/Y) beats by $630M.
Apr. 17, 2014, 12:05 AM
Apr. 16, 2014, 5:30 PM
Jan. 16, 2014, 10:13 AM
- "When you boil it all down, the 2013 environment is just one where the world took two steps forward followed by one step back," says Goldman (GS -1.6%) CFO Harvey Schwartz on the earnings call.
- Responding to a question about any planned structural changes to the struggling fixed-income unit, Schwartz instead points to the opportunities awaiting Goldman as competitors (like Morgan Stanley) pull back. "We’ve been building a lot of operating leverage into our fixed-income franchise over the last couple of years."
- Offered the opportunity to talk about client engagement thus far in the new year, Schwartz says its way too early to extrapolate anything.
- As to the Volcker rule, Schwartz says Goldman's been prepping for it since Dodd-Frank passed in 2010. Once the final rule came to light, the company immediately established a "Volcker implementation team."
- Earlier earnings coverage
- CC webcast
Jan. 16, 2014, 7:57 AM
- Institutional Client Services revenue of $3.41N is off 22% from a year ago, but gained 19% from Q3. FICC revenue of $1.72B is off 15% Y/Y (consensus was for a 23% decline). Company notes an improvement from Q3, but "economic uncertainty persisted and levels of activity generally remained low." Equity revenue of $1.68B fell 27% Y/Y after the sale of Goldman's Americas insurance unit.
- Investing & Lending revenue of $2.06B is up 4% from a year ago.
- Investment Management revenue of $1.6B is up 5% Y/Y.
- Operating expenses of $5.23B fall 6% Y/Y, with compensation expense of $2.189B off 11%.
- The bank's ROE jumps to 12.7% from 8.1% in Q3.
- Repurchases of 39.3M shares during 2013 at an average price of $157.11. 8.5M shares bought back in Q4 at average price of $164.90. Remaining authorization is for 57.2M shares.
- GS +0.4% premarket
- CC at 9:30 ET
Jan. 16, 2014, 7:36 AM
- Goldman Sachs Group Inc. (GS): Q4 EPS of $4.60 beats by $0.43.
- Revenue of $8.78B (-5.0% Y/Y) beats by $1.16B.
Jan. 16, 2014, 12:05 AM
Jan. 15, 2014, 5:30 PM
Jan. 15, 2014, 9:03 AM
- "We still have not approached the true earnings potential of Bank of America (BAC)," says CEO Brian Moynihan, leading off the earnings call. The bank reported EPS of $0.29, beating estimates for $0.26, but adjusting for DVA, litigation, and the artificially low tax rate brings core EPS up to $0.42, notes Hedgeye's Josh Steiner.
- CC webcast and presentation slides
- Declining to answer a question about the Fed stress tests and BofA's capital return plans (will the nominal $0.01 dividend be hiked this year), CFO Bruce Thompson notes the bank's Tier 1 common capital ratio is around 9%, higher than the proposed 8.5% minimum which doesn't take effect until 2019.
- The bank cut 5,826 jobs in Q4 - with the cuts coming in branches and mortgage servicing/origination.
- Goldman Sachs (GS) and Morgan Stanley (MS) investors take note: BofA's FICC revenue of $2.1B jumped 16% Y/Y. JPMorgan yesterday reported a 1% Y/Y gain vs. expectations for an 11% decline. The Street expects Goldman to report a 23% decline (after Q3's 44% tumble) and Morgan Stanley an 8% increase. Is a positive surprise looming?
- BAC +2.9% premarket to $17.25, the highest price in nearly 4 years.
Oct. 17, 2013, 7:37 AM
- Goldman Sachs (GS): Q3 EPS of $2.88 beats by $0.45.
- Revenue of $6.72B misses by $0.64B. (PR)
Oct. 17, 2013, 12:05 AM
Oct. 16, 2013, 5:30 PM
Sep. 30, 2013, 3:48 AM
- Analysts have cut their earnings estimates for the top five U.S. banks by over $1B in total, due to increasing fears about a sharp fall in trading revenue - especially from fixed-income operations - and higher legal costs.
- JPMorgan (JPM) has been particularly affected, with consensus for net income down $526M to below $5B. The company's legal woes are seen adding $2B to expenses.
- Analysts have lowered their net income for Bank of America (BAC) by $128M, for Goldman Sachs (GS) by $123M, for Morgan Stanley (MS) by $97M, and for Citigroup (C) by $210M. The latter has already reportedly told investors about a sharp drop in trading revenues.
- Banks had hoped a big September would help offset a slow summer, but that hasn't happened.
Jul. 16, 2013, 7:45 AM
More on Goldman Sachs (GS) Q2 earnings: EPS of $3.70 beat expectations by $0.89 and compared to $1.78 a year ago. Investment banking revenue of $1.55B up 29% Y/Y, with Underwriting revenue up 45% to $1.07B. Investment banking backlog is about unchanged from Q1. Trading revenue (FICC) of $2.46B, up 12% Y/Y - "favorable" conditions for most of the quarter became "more challenging" towards the end. Operating expenses of $5.97B up 14% Y/Y, with compensation expense of $3.7B up 27%. Ratio of compensation to revenue of 43% in H1 vs. 44% in H1 2012. CC at 9:30 ET. Shares +1.2% premarket. (PR)| Jul. 16, 2013, 7:45 AM | 1 Comment