Goldman Sachs blows through analyst expectations
Investment banking giant Goldman Sachs surpassed analysts’ fourth-quarter earnings expectations.
Goldman (GS) reported fourth-quarter EPS of $5.08 versus estimates of $4.84. Revenue for the fourth quarter came in at $8.17 billion versus estimates of $7.76 billion.
“After a challenging first half, the firm performed well for the remainder of the year as the operating environment improved,” CEO Lloyd Blankfein said in a statement, adding, “We continued to manage our expenses carefully and we enter the new year with industry leading positions across our businesses, as well as strong capital and liquidity.”
Investment banking revenue came in at $1.49 versus estimates of $1.47. Trading revenue came in at $3.6 billion compared to expectations of $3.28 billion.
Fixed Income, Currency and Commodities (FICC) was a standout area. The bank reported net revenues of $2 billion in the fourth quarter, up 78% from the same period a year prior. Analysts had been expecting $1.59 billion. FICC benefitted from rising interest rates and tightening spreads.
Shares of Goldman were last trading up 0.5% in the pre-market.
All five of the big banks beat analysts’ earnings estimates for the fourth quarter.
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Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter.
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