Goldman Sachs (GS) Misses Q4 EPS by $2.24

Goldman Sachs (NYSE: GS) reported Q4 EPS of $3.32, $2.24 worse than the analyst estimate of $5.56. Revenue for the quarter came in at $10.59 billion versus the consensus estimate of $10.79 billion.

• Net revenues in Global Banking & Markets were $6.52 billion for the fourth quarter of 2022, 14% lower than both the fourth quarter of 2021 and the third quarter of 2022.
• Investment banking fees were $1.87 billion, 48% lower than a strong fourth quarter of 2021, due to significantly lower net revenues in both Equity and Debt underwriting, reflecting a significant decline in industry-wide volumes, and lower net revenues in Advisory, reflecting a significant decline in industry-wide completed mergers and acquisitions transactions from elevated activity levels in the prior year period. The firm’s Investment banking fees backlog4 decreased compared with the end of the third quarter of 2022.
• Net revenues in FICC were $2.69 billion, 44% higher than the fourth quarter of 2021, primarily reflecting significantly higher net revenues in FICC intermediation, driven by significantly higher net revenues in interest rate products and commodities and higher net revenues in credit products, partially offset by significantly lower net revenues in currencies and mortgages. In addition, net revenues in FICC financing were significantly higher, primarily driven by secured lending. Net revenues in Equities were $2.07 billion, 5% lower than the fourth quarter of 2021, due to lower net revenues in Equities intermediation, reflecting lower net revenues in both derivatives and cash products.
• Net revenues in Equities financing were higher, primarily reflecting increased client activity. Net revenues in Other were $(114) million, compared with $(59) million for the fourth quarter of 2021.

For earnings history and earnings-related data on Goldman Sachs (GS) click here.

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