Goldman Sachs Group Inc (GS)

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Earnings Preview: Goldman Sachs Group Inc. (NYSE: GS)
By: 24/7 Wall St. | April 14, 2023

• Here is a look at three financial services firms that will reveal first-quarter results first thing Tuesday.

Goldman Sachs

Goldman Sachs Group Inc. (NYSE: GS) has posted a 12-month share price increase of about 3.2%, turning around a 12-month drop of 5.2% at the end of the December quarter. Given the bank’s dependence on investment banking services for IPOs, mergers and acquisitions (of which there were few in the first quarter), the bank could take another hit to profits. Trading revenue is likely to be higher, but probably not high enough to cover the arid deal landscape.

Of the 25 analysts covering the firm, 16 have a rating of Buy or Strong Buy, and eight more have Hold ratings. At a share price of around $332.10, the upside potential based on a median price target of $390.00 is 17.4%. At the high price target of $460.00, the implied upside is 38.5%.

First-quarter revenue is forecast to come in at $12.66 billion, up 19.5% sequentially but a drop of 2.1% year over year. Adjusted EPS are forecast at $8.06, up 142.7% sequentially but down 33.0% year over year. The current estimates for the 2023 fiscal year call for revenue of $49.44 billion, up 4.4%, and EPS of $31.75, up 5.6%.
Goldman stock trades at 10.6 times expected 2023 EPS, 8.7 times estimated 2024 earnings of $38.60 and 8.0 times estimated 2025 earnings of $42.40 per share. The stock’s 52-week range is $277.84 to $389.58. Goldman pays an annual dividend of $10.00 (yield of 3.01%). Total shareholder return for the past 12 months was 7.62%.

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