Goldman Sachs reported better-than-expected Q1 2023 earnings, though profit was down compared to last year. The post Goldman Sachs Down 3% Premarket on Missed Earnings Report appeared first on Tokenist.
Goldman’s Posts Q1 Profit Decline, Misses Revenue Estimates
Shares of Goldman Sachs are down more than 3% in premarket trading Tuesday after the Wall Street bank missed analysts’ estimates for revenue and reported a profit decline for Q1 2023. The stock stood at $327.80 per share ahead of the market opening.
The bank reported first-quarter earnings per share (EPS) of $8.79, beating the analysts’ estimates of $8.24. However, the earnings were below the $10.76 per share reported in the same quarter last year.
The bank generated $12.22 billion in revenue in the three months, down 5% year-over-year and below the consensus estimates of $12.83 billion. Goldman’s revenue figures from its Global Banking & Markets and FICC sales & trading also missed expectations.
“The events of the first quarter acted as another real-life stress test, demonstrating the resilience of Goldman Sachs and the nation’s largest financial institutions.”
– David Solomon, chairman and chief executive officer of Goldman Sachs.
Goldman’s annualized return on equity (ROE) hit 11.6% in Q1, above the consensus projection of 11.1%. Net interest income stood at $1.78 billion in the quarter, well below the expected $2.18 billion. Total assets under management (AUM) rose 12% year-over-year to $2.67 trillion, compared to analysts’ estimates of $2.6 trillion.
Other Wall Street Banks Report Strong Earnings Boosted by High-Interest Rates
Goldman’s latest earnings report was described as “very messy” by analysts at Vital Knowledge. Investors appeared to have shared these views, with the bank’s stock indicated to start the Tuesday trading session in the red.
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