Goldman Sachs CEO David Solomon is interviewed by Bloomberg Television at the Goldman Sachs Financial Services Conference in New York, Dec. 6, 2022.
Michael Nagel | Bloomberg | Getty Images
Goldman Sachs It is scheduled to report second-quarter earnings before the market opens on Wednesday.
Here’s what Wall Street expects:
- Earnings per share: $3.18, according to Refinitiv
- Revenue: $10.84 billion
- Trading revenue: $2.78 billion in fixed income; $2.42 billion in equities, according to FactSet
- Investment banking revenue: $1.49 billion
expectations are set low Goldman Sachs this quarter.
The bank’s most important business faces a tough environment as investment banking and deal activity continue to slump. Among other things, Goldman warned investors of write-downs in commercial real estate and impairments related to the planned sale of fintech unit GreenSky.
Taken together, the bank is expected to post its weakest results under Chief Executive David Solomon’s tenure.
Unlike its more diversified rivals, Goldman derives most of its income from volatile Wall Street activities, including trading and investment banking. This can lead to outsized returns in boom times and underperformance when markets don’t cooperate.
Goldman Sachs said trading revenue will drop 25% in the quarter. Investment banking has been weak due to fewer issuances and initial public offerings due to Fed rate hikes.but the opponent JPMorgan Goldman Sachs released better-than-expected trading and banking results last week, saying activity improved at the end of the quarter, so Goldman could beat its guidance.
Analysts may have asked Solomon if he had plans to continue scaling back his push into consumer banking, with unfortunate results.Goldman Sachs is reportedly in discussions to sell its Apple Card business to American Expressbut it is unclear how far those talks have progressed.
Goldman shares have fallen nearly 2 percent this year, compared with a decline of about 18 percent for the KBW Bank Index.
Friday, JP Morgan Citigroup and FuGuo bank Both companies reported earnings that topped analysts’ expectations amid rising interest rates. Tuesday, Bank of America and Morgan Stanley Results that exceeded expectations were also reported.
The story is developing. Please check for updates.