Goldman Sachs Group Inc (GS)

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Earnings Preview: Goldman Sachs Group Inc. (NYSE: GS)
By: 24/7 Wall St. | October 14, 2022

• Here is a preview for four companies set to report quarterly results first thing Tuesday morning.

Goldman Sachs

Goldman Sachs Group Inc. (NYSE: GS) has posted a 12-month share price decline of about 19.5%. The continued slowdown in IPOs and M&A likely hit will the firm’s investment banking revenue harder than the rise in net interest income will boost its overall revenue. A new initiative launched this week with Apple to offer a high-yield savings account to Apple Card holders is unlikely to bear fruit for a few quarters. Even then, it is unlikely to make up the revenue declines in investment banking.

Of the 26 analysts covering the firm, 18 have a rating of Buy or Strong Buy and seven more have Hold ratings. At a share price of around $305.40, the upside potential based on a median price target of $370.00 is 21.2%. At the high price target of $483.00, the implied upside is 58.2%.

Third-quarter revenue is forecast to come in at $111.53 billion, a decline of about 2.8% sequentially and a drop of 15.3% year over year. Adjusted EPS are forecast at $7.51, down 2.8% sequentially and 98.8% lower year over year. The current estimates for the 2022 fiscal year call for revenue of $47.26 billion, down 20.4%, and EPS of $33.67, down about 43.4%.

The stock trades at 9.1 times expected 2022 EPS, 8.2 times estimated 2023 earnings of $37.34 and 7.4 times estimated 2024 earnings of $41.60. Its 52-week trading range is $277.84 to $426.16. Goldman Sachs pays an annual dividend of $10.00 (yield of 3.4%). Total shareholder return for the past 12 months was negative 19.4%.

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