Earnings Preview: The Goldman Sachs Group, Inc.

| About: Goldman Sachs (GS)

Company Profile

The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as a range of financial services to corporations, financial institutions, governments and high-net-worth individuals worldwide.

Goldman Sachs (NYSE:GS) is scheduled to report its second quarter earnings results on July 17, 2012, before market open.

Technical Overview

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Goldman Sachs has a market cap of $46.36 billion and it is currently trading around $94.25 with a 52 week range of $84.27 to $139.25. The stock has risen 4.22% year to date. The following table provides the key financial ratios for Goldman Sachs:

Key Ratio Value
PEG 1.07
P/E 13.9
Forward P/E 7.55
Profit Margin 10.92%
Return On Assets (ROA) 0.41%
Return On Equity (ROE) 5.33%

Recent News

  • On July 16, 2012, Goldman Sachs announced that it has temporarily restricted new investments into a European money-market, the Euro Government Liquid Reserves Fund after ECB's rate cut.
  • On June 11, 2012, Goldman Sachs announced that Mark Schwartz will return as a Vice Chairman of the firm and Chairman of Goldman Sachs Asia Pacific. Schwartz will be based in Beijing, underscoring the importance of China, and more broadly, the Asia Pacific region, to the firm's overall business.
  • On May 15, 2012, Goldman Sachs Asset Management ("GSAM") announced that it has completed its acquisition of Dwight Asset Management ("Dwight"), a Vermont-based stable value money manager, from Old Mutual Asset Management ("OMAM"). The transaction establishes GSAM as a leading provider of investment solutions for defined contribution ("DC") plans and reinforces the importance of stable value as a principal preservation option for plan participants.
  • On April 19, 2012, TVS Logistics Services, India's leading third-party logistics service provider, announced that it had reached an agreement with an affiliate of Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR") and Goldman Sachs for an investment of INR 2,688 million (approximately US$ 53 million).

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $6.51 billion when compared to $7.28 billion for the same quarter last year. Earnings per share for the second quarter are expected to be $1.27 a share, down from $1.85 a share in the year-ago period.

The average price target from analyst for Goldman Sachs is $124.65 with average rating is OVERWEIGHT

Out of the last 4 quarters, Goldman Sachs has met or exceeded the EPS estimates 2 times. The following chart shows the analyst estimates history and the actual EPS results:

The following chart shows the annual summary of sales and net income for Goldman Sachs:


Morgan Stanley (NYSE:MS), UBS AG (NYSE:UBS), Citigroup (NYSE:C) and JPMorgan Chase & Co (NYSE:JPM) are considered as major competitors for Goldman Sachs and the table below provides the key metrics for these companies:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in GS, C, JPM, MS, UBS over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

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