Goldman Sachs will report its first-quarter earnings before the opening bell on Monday, April 17. Wall Street analysts expect the megabank to report EPS of $12.35 and revenue of around $14.81 billion. Yet the firm has labored under an extremely difficult year, with its shares down 14% as of Friday.
The upcoming earnings report is anticipated with heightened interest, particularly following strong performances from competitors like JPMorgan Chase and Morgan Stanley. Both firms beat first-quarter estimates, all due in large part to a boom in equities trading. Goldman Sachs might do almost as well, thanks to all the other factors in the current market environment, particularly its huge equities trading revenue.
In the first three months of President Donald Trump’s administration, Goldman racked up some of its biggest such trading wins ever. Equities trading revenue was higher by 48% and fixed income trading revenue increased 45%. Goldman Sachs $3.65 billion in equities trading, analysts are forecasting that number to kick off next week’s earnings report. They project fixed income trading revenue will be $4.56 billion. Further, the investment banking segment is expected to bring in $1.94 billion in revenue.
Goldman Sachs’ wealth and asset management division has taken on increased importance as a growth engine for the bank. CEO David Solomon has made clear the division’s importance in fueling long-term growth. He points out its ability to increase total returns, even during up and down markets.
Financial institutions are having to interact with a rapidly changing economic environment. Goldman Sachs will continue to be under a microscope as it tries to outpace its competition and find the best ways to capitalize on the firm’s strengths. Investors and analysts alike are excited to see even the smallest glimmer of improvement in the wealth management space. They’ll be draining a lot of focus on how O recently market trend is impacting trading revenues.