economy
Goldman Shares Fall on Imperfect Quarterly Results. Here's Our Advice on the Stock From Here
Our thesis on the investment banking giant remains intact despite some blemishes in its first-quarter earnings.
TL;DR
- Goldman Sachs' Q1 revenue of $17.23 billion and EPS of $17.55 exceeded LSEG estimates.
- Shares fell over 2% despite strong earnings, influenced by renewed Iran war tensions.
- Investment banking, the firm's largest segment, saw revenue surge 48% year over year.
- The bank's efficiency ratio improved to 60.5%, and return on tangible common equity advanced.
- Despite missing CET1 ratio expectations, it remains comfortably above regulatory minimums.
- Goldman Sachs repurchased $5 billion worth of stock in the first quarter.
- Global banking and markets division reported record quarterly revenue of $12.74 billion.
- Fixed income, currency, and commodities (FICC) revenue fell 10% year over year but increased 29% sequentially.
- Asset and wealth management revenue advanced 10% year over year, with assets under supervision reaching a record $3.65 trillion.
- Analysts maintain a price target of $1,050 and a 'buy on a pullback' rating.