Goldman Sachs is poised to report its fourth-quarter earnings on Wednesday before the market opens, with analysts surveyed by LSEG forecasting an earnings per share of $8.22 and revenue of $12.39 billion. The investment banking giant is buoyed by a robust performance in trading and investment banking, reflecting the overall industry's 29% increase in revenue during the quarter. Executives from Goldman Sachs will further discuss these results during an investor call scheduled for 9:30 a.m. ET.
The firm has seen its shares jump nearly 50% over the past year, outperforming major banking competitors. This surge is attributed to a favorable economic environment shaped by the Federal Reserve's easing cycle and the November election of Donald Trump, which has fueled expectations for increased mergers and stock deals. As a result, Goldman Sachs anticipates a significant rise in investment banking and trading fees, projecting double-digit percentage growth.
A key driver of Goldman Sachs' success is its asset and wealth management division, regarded as the firm's growth engine. The buoyant stock market late last year is expected to have bolstered results within this division, contributing to the firm's robust financial performance. With Wall Street deals rebounding, Goldman Sachs is riding a wave of enthusiasm that has propelled its business forward.
In terms of trading revenue, Goldman Sachs is expected to report $2.45 billion from Fixed Income and $3 billion from Equities. Meanwhile, its investment banking revenue is projected to reach $2.01 billion. These figures highlight the firm's strong position in the market and its ability to capitalize on favorable trends within the financial industry.
As Goldman Sachs prepares to unveil its results, other major banks are also set to report their performances. JPMorgan Chase, Wells Fargo, and Citigroup will release their earnings on Wednesday, while Bank of America and Morgan Stanley are scheduled to announce their results on Thursday. This wave of financial disclosures will provide investors with a comprehensive view of the banking sector's health as it navigates an evolving economic landscape.