CEO David Solomon, Goldman Sachs, during a Bloomberg Television astatine the Goldman Sachs Financial Services Conference successful New York, Dec. 6, 2022.
Michael Nagle | Bloomberg | Getty Images
Goldman Sachs is scheduled to study second-quarter net earlier the opening doorbell Wednesday.
Here's what Wall Street expects:
Earnings: $3.18 per share, according to RefinitivRevenue: $10.84 billionTrading revenue: Fixed income $2.78 billion; equities $2.42 billion, per FactSetInvesting banking revenue: $1.49 billionExpectations person been acceptable low for Goldman this quarter.
The slope faces a pugnacious situation for its astir important businesses arsenic a slump successful concern banking and trading enactment drags on. On apical of that, Goldman has warned investors of write-downs connected commercialized existent property and impairments tied to its planned merchantability of fintech portion GreenSky.
Taken together, the slope is expected to station immoderate of the weakest results of CEO David Solomon's tenure.
Unlike much diversified rivals, Goldman gets the bulk of its gross from volatile Wall Street activities, including trading and concern banking. That tin pb to outsized returns during boom times and underperformance erstwhile markets don't cooperate.
Goldman has said trading gross was headed for a 25% diminution successful the quarter. Investment banking has been anemic due to the fact that of subdued issuance and IPOs amid the Federal Reserve's involvement complaint increases. But rival JPMorgan Chase posted better-than-expected trading and banking results past week, saying that enactment improved precocious successful the quarter, truthful it's imaginable Goldman whitethorn transcend its guidance.
Analysts volition apt inquire Solomon astir plans to proceed retrenching from his ill-fated push into user banking. Goldman has reportedly been successful discussions to offload its Apple Card concern to American Express, but its unclear however acold those talks person advanced.
Goldman shares person dipped astir 2% this year, compared with the astir 18% diminution of the KBW Bank Index.
On Friday, JPMorgan, Citigroup and Wells Fargo each posted earnings that topped analysts' expectations amid higher involvement rates. Tuesday, Bank of America and Morgan Stanley besides reported results that exceeded forecasts.
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