Preview: What to Expect From Goldman Sachs’ Earnings Next Week

The New York-based leading global investment bank Goldman Sachs is expected to report its fourth-quarter earnings of $11.89 per share, which represents a year-over-year decline of about 2% from $12.08 per share seen in the same period a year ago.

The world’s leading investment manager would see a decline in revenue of nearly 1% to $11.65 billion from a year ago. It is worth noting that in the last two years, Goldman Sachs has surpassed market consensus expectations for profit and revenue most of the time.

The bank will announce its earnings results before the market opens on Tuesday, January 18th. Goldman Sachs shares closed nearly 1% higher at $403.05 on Tuesday. The stock jumped over 45% in 2021.

Analyst Comments

“CEO Solomon is laser-focused on delivering on the ROE/ROTCE targets of 13%+ / 14%+ by 2023, as evidenced by the reduction in comp ratio. Goldman Sachs (GS) should be able to keep their total expense ratio under 60% even as revenues decline,” noted Betsy Graseck, equity analyst at Morgan Stanley.

“GS has led peers in market share gains. We expect they can hold this share as they use their excess capital to lean into client flows, risk, middle-market banking and M&A capabilities. GS is also leaning into tech, which could drive market share gains higher. Examples span across the platform from trading to corporate treasury to consumer finance. These 3 trends give us more conviction that GS will be able to achieve its 13%+ / 14%+ ROE / ROTCE targets by 2023.”

Goldman Sachs Stock Price Forecast

Fourteen analysts who offered stock ratings for Goldman Sachs in the last three months forecast the average price in 12 months of $477.23 with a high forecast of $576.00 and a low forecast of $416.00.

The average price target represents an 18.40% change from the last price of $403.05. From those 14 analysts, nine rated “Buy”, five rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $479 with a high of $594 under a bull scenario and $252 under the worst-case scenario. The firm gave an “Equal-weight” rating on the financial services company’s stock.

Several other analysts have also updated their stock outlook. BofA Global Research cut the price objective to $475 from $490. JPMorgan raised the target price to $465 from $460. UBS lifted the target price to $416 from $415. Evercore ISI upped the target price to $445 from $442.

Technical analysis also suggests it is good to buy as 100-day Moving Average and 100-200-day MACD Oscillator signals a buying opportunity.

Check out FX Empire’s earnings calendar