- Goldman Sachs sweeps Wall Street as fourth-quarter earnings season begins.
- The bank’s earnings per share were 43% above the Wall Street consensus.
- Revenue increased 22% year-over-year, largely due to the Global Banking and Markets unit.
Goldman Sachs (GS) kicked off the fourth quarter earnings cycle with a resounding bang. While their Dow Jones peers JPMorgan (JPM) and Citigroup (C) boasted healthy profit gains, Goldman stole the show.
The Wall Street bank soared more than 6% to $606 on Wednesday after revealing a huge surplus over expectations. As the largest holding in the Dow Jones Industrial Average (DJIA), Goldman led the index to a 1.7% gain by mid-afternoon. The Dow is up more than 3% this week alone, and Wednesday’s CPI release only helped as core inflation came in below expectations.
Goldman Sachs Stock News
Goldman reported $11.95 in GAAP earnings per share in the fourth quarter, which was $3.60 or 43% above consensus. Revenue of $13.87 billion also beat expectations by more than $1.4 billion. That figure was more than 22% above the fourth quarter of the previous year.
The outperformance was fairly widespread across the bank, but the Global Banking and Markets segment in particular was disproportionately important. Net income was $8.48 billion, up 33% year-over-year.
Asset and Wealth Management revenue of $4.72 billion increased 8% year-over-year. Platform Solutions revenue, just under $600 million, was up 18% year-over-year.
Total assets under management increased 12% year-over-year to $3.14 trillion, while book value per share increased more than 7% in 2024 to $336.77.
Net interest income of $2.34 billion increased by approximately $1 billion from the prior year.
Goldman Sachs Stock Forecast
Goldman shares have risen above recent resistance near $593, and $600 appears to be support for now. The upper trend line that has been in place since March 2024 leads us to expect GS stock to rise to $645 before turning heavy.
The 20-day SMA is still at $575, but is expected to rise to $600 in early February. The Relative Strength Index (RSI) is only at 63, so there is no danger of reaching overbought levels yet, and the rally will likely continue for several weeks.
GS Stock Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
