On Tuesday, July 13, Goldman Sachs Group GS will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Goldman Sachs Group EPS will likely be near $9.45 while revenue will be around $12.17 billion, according to analysts. In the same quarter last year, Goldman Sachs Group reported EPS of $0.53 on revenue of $13.29 billion.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be up 1683.02%. Sales would be down 8.46% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 10.22 | 7.47 | 5.57 | 3.78 |
| EPS Actual | 18.60 | 12.08 | 9.68 | 0.53 |
| Revenue Estimate | 12.61 B | 9.99 B | 9.46 B | 9.73 B |
| Revenue Actual | 17.70 B | 11.74 B | 10.78 B | 13.29 B |
Stock Performance
Shares of Goldman Sachs Group were trading at $371.76 as of July 09. Over the last 52-week period, shares are up 74.95%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Goldman Sachs Group is scheduled to hold the call at 09:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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