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  • Goldman Sachs (GS) Shares Jump 4% in Pre-Market as Q2 Result Shows Impressive Revenue

The Q2 report Goldman Sachs posted is arguably one of the best performances when compared with how its core competitors performed in the second quarter.

American multinational investment bank and financial services company Goldman Sachs Group Inc (NYSE: GS) has released its second-quarter performance with revenue and earnings surpassing what analysts previously estimated.

Per the company’s performance, total revenue of $11.86 billion was recorded as against the $10.86 billion estimated by analysts. The second quarter Earnings Per Share (EPS) came in at $7.73 a share versus the $6.58 per share estimate, according to Refinitiv. The performance of Goldman Sachs is a very rare one, considering the general uncertainties in the global financial ecosystem since the beginning of the year.

While the EPS is generally better than what analysts projected, the Q2 profit saw a 48% decline to $2.79 billion. This is because there was a comprehensive decline in investment banking across the entire financial sector. However, the bank capitalized on its fixed income revenue which grew by 55% during the quarter.

“We delivered solid results in the second quarter as clients turned to us for our expertise and execution in these challenging markets,” CEO David Solomon said in the release, “Despite increased volatility and uncertainty, I remain confident in our ability to navigate the environment, dynamically manage our resources and drive long-term, accretive returns for shareholders.”

Goldman Sachs also reported an annualized return on average common shareholders’ equity (ROE) which grew by 10.6% for the second quarter of 2022 and 12.8% for the first half of 2022. Annualized return on average tangible common shareholders’ equity (ROTE) also notably recorded an 11.4% upsurge for the second quarter of 2022 and 13.6% for the first half of 2022.

The bank’s fixed income operations raked in $3.61 billion in revenue, a figure that is higher than the $2.89 billion StreetAccount estimate. Investors are somewhat please with the earnings posted by Goldman Sachs, and are complimenting the bullish close recorded on Friday with a 3.77% growth in today’s Pre-Market to $304.94 per share.

Goldman Sachs Revenue Performance in Comparison to Its Peers

The Q2 report Goldman Sachs posted is arguably one of the best performances when compared with how its core competitors performed in the second quarter. The duo of JPMorgan Chase & Co (NYSE: JPM) and Wells Fargo & Co (NYSE: WFC) both posted writedowns tied to declines in loan books or equity holdings.

Unlike Goldman Sachs, Wells Fargo reported a decline in profit as it earmarked sizable funds in order to account for expected loan losses. Against the general slump in investment banking, the drop in this sector went overboard for Morgan Stanley (NYSE: MS), a development that made it post disappointing earnings.

Alongside Goldman Sachs, Citigroup Inc (NYSE: C) also posted impressive results that topped expectations as the banking giant capitalized on rising rates and strong trading results.

Goldman Sachs shares have taken a very massive hit this year, falling as much as 23% in the Year-to-Date (YTD) period through the close of trading on Friday.


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