David Solomon, Chairman & CEO Goldman Sachs, speaking on CNBC’s Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 17th, 2024.
Adam Galici | CNBC
Goldman Sachs is scheduled to report fourth-quarter earnings before the opening bell Wednesday.
Here’s what Wall Street expects:
- Earnings: $8.22 per share, according to LSEG
- Revenue: $12.39 billion, according to LSEG
- Trading Revenue: Fixed Income of $2.45 billion, Equities of $3 billion, per StreetAccount
- Investing Banking Revenue: $2.01 billion, per StreetAccount
Goldman Sachs is riding a wave of enthusiasm over a rebound in Wall Street deals.
The bank’s shares jumped nearly 50% last year, topping its big bank rivals, as the Federal Reserve’s easing cycle and the November election of Donald Trump boosted expectations for mergers and stock deals.
Goldman’s fourth-quarter results will give investors a preview of what to expect this year, as investment banking and trading fees are both expected to rise by double digit percentages. Investment banking revenue for the industry jumped 29% in the quarter, per Dealogic figures, fueled by rising advisory and equity capital markets activity.
Furthermore, the buoyant stock market late last year should boost results within the firm’s asset and wealth management division, which CEO David Solomon has called the growth engine of the firm.
For Solomon, the setup couldn’t be more different than a year earlier, in the aftermath of a strategic pivot away from an ill-fated foray into consumer finance. Back then, Solomon was under pressure to appease internal stakeholders including Goldman partners as losses tied to consumer finance mounted, and as Wall Street deals dried up because of rising rates and heightened regulatory scrutiny.
JPMorgan Chase is also reporting results Wednesday, along with Wells Fargo and Citigroup, while Bank of America and Morgan Stanley are due to report on Thursday.
This story is developing. Please check back for updates.