Goldman Sachs Group Inc. (NYSE: GS) has confirmed that it will release its Q3 2021 earnings on Wednesday, October 13, 2021.
What to look for
The company is expected to deliver a YoY earnings increase on strong revenues when it releases earnings for the period ending September 2021. The earnings could move the stock higher if the numbers top expectations, but it could move lower if they miss. Notably, immediate price change's sustainability and future earnings expectation are subject to the management discussion on the company's business conditions.
Earnings: Stockearning’s Estimated EPS for the current quarter in review is expected to be $9.71 per share, representing a YoY increase of 0.3%. Historical EPS performance over the past 12 quarters shows that the company has beat estimates ten times (83%) and missed twice (16%). During the second quarter of 2021, the company reported EPS of $15.02, topping estimates of $9.9.
Revenue: in Q2 2021, the company reported net revenue of $15.39 billion with net earnings of $5.49 billion. For the first half of 2021, the company reported net revenue of $33.09 and $12.23 billion in net earnings. CEO David Solomon said that the company had a strong performance in Q2 with record revenues thanks to strength in the client franchise and progress in strategic initiatives. Net revenues in Investment Banking, Asset Management, and Consumer & Wealth Management will continue to influence the company's net revenue in Q3, and Goldman Sachs expects revenue of $11.25 billion, representing a 4.3% increase YoY.
Stock movement: Since the last earnings release, Goldman Sachs stock has gained 3.2%. Following previous earnings releases, the share price was DOWN 27 times over the past 46 quarters. So, the Historical price reaction predicts a 58% chance of share price going down after Goldman Sachs releases its Q3 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 2%, and the predicted move on the seventh day is 3%.
What analysts are saying
Citi analysts Keith Horowitz recently raised the target price on Goldman Sachs stock from $410 to $440and maintained a “Buy” rating on the stock. Horowitz cited prospects for return in return improvement on tangible equity in US banks.
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