Goldman Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Goldman Sachs GS reported $12.73 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 16.9%. EPS of $8.62 for the same period compares to $3.08 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $12.6 billion, representing a surprise of +1.04%. The company delivered an EPS surprise of +1.17%, with the consensus EPS estimate being $8.52.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Goldman performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Book Value Per Share: $327.13 compared to the $328.84 average estimate based on six analysts.
• Leverage ratio: 5.4% versus 5.8% estimated by four analysts on average.
• Assets Under Supervision (AUS) - Total: $2,934 billion versus the four-analyst average estimate of $2,901.43 billion.
• Standardized Capital Rules - Common equity tier 1 capital ratio: 14.8% versus the four-analyst average estimate of 15%.
• Net Revenues- Platform Solutions- Consumer platforms: $599 million versus $623.13 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change.
• Net Revenues- Asset & Wealth Management- Management and other fees: $2.54 billion versus $2.54 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +7.7% change.
• Net Revenues- Global Banking & Markets- Equities: $3.17 billion versus the six-analyst average estimate of $3.07 billion. The reported number represents a year-over-year change of +6.8%.
• Net Revenues- Asset & Wealth Management- Private banking and lending: $707 million versus $672.29 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -19.1% change.
• Net Revenues- Asset & Wealth Management- Equity investments: $292 million versus the six-analyst average estimate of $308.05 million. The reported number represents a year-over-year change of -172.5%.
• Net Revenues- Platform Solutions- Transaction banking and other: $70 million versus the six-analyst average estimate of $91.64 million. The reported number represents a year-over-year change of -14.6%.
• Net Revenues- Global Banking & Markets- FICC: $3.18 billion compared to the $2.97 billion average estimate based on six analysts. The reported number represents a change of +17.3% year over year.
• Net Revenues- Asset & Wealth Management- Debt investments: $297 million versus $339.98 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +50.8% change.
• Shares of Goldman have returned +7.5% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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