Goldman Sachs(GS)

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Goldman Sachs(GS) - 2025 Q1 - Earnings Call Transcript
2025-04-14 17:12
Financial Data and Key Metrics Changes - In Q1 2025, the company generated net revenues of $15.1 billion, with earnings per share of $14.12 and a return on equity (ROE) of 16.9% [5][25] - The return on tangible equity (ROTE) was reported at 18% [5] - The efficiency ratio for the quarter was 60.6%, with total operating expenses amounting to $9.1 billion [39] Business Line Data and Key Metrics Changes - Global Banking & Markets produced revenues of $10.7 billion, with an ROE exceeding 20% [26] - Advisory revenues decreased to $792 million, while equity underwriting revenues remained flat at $370 million [26] - Debt underwriting revenues increased by 8% to $752 million, driven by asset-backed and investment-grade activity [26] - FICC net revenues were $4.4 billion, with record financing revenues of $1 billion [28] - Equities net revenues reached a record $4.2 billion, with intermediation revenues rising 28% year-over-year [29] - Asset & Wealth Management revenues totaled $3.7 billion, with management and other fees up 10% year-over-year to $2.7 billion [31] Market Data and Key Metrics Changes - Total assets under supervision reached a record $3.2 trillion, with $29 billion of long-term net inflows [36] - Alternative assets under supervision totaled $341 billion, with gross third-party fundraising of $19 billion in the quarter [37] Company Strategy and Development Direction - The company is focused on enhancing client experience and improving efficiency through technology and automation investments, including AI solutions [15][16] - The strategic update emphasizes a commitment to long-term growth opportunities in alternatives, wealth management, and solutions [11][15] - The company aims to maintain its leadership position in M&A advisory, having been the number one advisor globally for the last 20 years [9] Management's Comments on Operating Environment and Future Outlook - The management noted a significant decline in US growth expectations from over 2% to 0.5%, with increased recession risks [18] - Concerns regarding trade wars and economic uncertainty were highlighted, impacting client decision-making [19][20] - Despite the uncertainty, client dialogues remain elevated, and the backlog has increased for the fourth consecutive quarter [10][24] Other Important Information - The company returned $5.3 billion to common shareholders, including record stock repurchases of $4.4 billion [41] - A multi-year share repurchase program of up to $40 billion was authorized, providing increased capital management flexibility [41] Q&A Session Summary Question: Impact of deleveraging on financing - Management indicated that while there is significant demand for financing, some balances may decrease as asset prices reset, but overall client activity remains strong [46][48] Question: Market activity post-April 2nd - Management acknowledged a shift in market perspectives but noted that client activity remains high despite increased uncertainty [54][56] Question: Competitive landscape in markets - Management expressed confidence in their market position, emphasizing strong client feedback and a history of share gains [63][64] Question: Buyback strategy - The company explained that the record buybacks were driven by strong earnings generation and a commitment to return excess capital to shareholders [66][70] Question: Regulatory changes and capital allocation - Management discussed the potential benefits of regulatory reforms and indicated a focus on deploying capital to support client activities while maintaining a sustainable dividend [76][80] Question: Alternatives fundraising outlook - Management highlighted the significant backlog in sponsor activity and the long-term growth potential in private assets despite short-term pressures [105][120] Question: Debt underwriting outlook - Management noted a strong focus on debt underwriting, with a track record of delivering results during uncertain times [124][126]
Goldman Sachs(GS) - 2025 Q1 - Earnings Call Presentation
2025-04-14 15:51
First Quarter 2025 Earnings Results Presentation April 14, 2025 Results Snapshot | Net Revenues | | Net Earnings | | EPS | | | | --- | --- | --- | --- | --- | --- | --- | | 1Q25 | $15.06 billion | 1Q25 | $4.74billion 1Q25 | | | $14.12 | | Annualized ROE1 | | Annualized ROTE1 | | Book Value Per Share | | | | 1Q25 | 16.9% | 1Q25 | 18.0% 1Q25 | | $344.20 | (+2.2% YTD) | | Quarterly Highlights | | | | 4 Selected Items | | | | 3rd | highest quarterly net revenues | | $ in millions, except per share amounts | | | ...
Goldman Tops Q1 Earnings on Higher Equity Trading Revenues, Stock Up
ZACKS· 2025-04-14 15:05
Core Viewpoint - The Goldman Sachs Group, Inc. reported strong first-quarter 2025 adjusted earnings per share of $14.12, exceeding the Zacks Consensus Estimate of $12.71 and showing an increase from $11.58 in the same quarter last year [1]. Financial Performance - Net revenues for the quarter reached $15.1 billion, a 6% increase year over year, surpassing the Zacks Consensus Estimate by 0.3% [5]. - Net earnings on a GAAP basis were $4.7 billion, reflecting a 15% increase from the prior-year quarter [4]. - Total operating expenses rose by 5% year over year to $9.13 billion [5]. Segment Performance - The Global Banking & Markets division generated revenues of $10.71 billion, up 10% year over year, driven by record net revenues in Equities and strong performance in Fixed Income, Currency, and Commodities [7]. - The Asset & Wealth Management division reported revenues of $3.68 billion, down 3% year over year, primarily due to lower net revenues in Equity and Debt investments [6]. - The Platform Solutions division's revenues decreased by 3% year over year to $676 million [7]. Capital and Shareholder Returns - As of March 31, 2025, the Common Equity Tier 1 capital ratio improved to 14.8%, up from 14.7% a year earlier, while the supplementary leverage ratio increased to 5.5% [8]. - The company returned $5.34 billion in capital to common shareholders during the quarter, which included $4.36 billion in share repurchases and $976 million in dividends [9]. Market Reaction and Outlook - Shares of Goldman Sachs gained 1.7% in pre-market trading following the better-than-expected results [2]. - The company is expected to benefit from a strong focus on investment banking and trading businesses, along with a solid deal-making pipeline, although rising expenses may pose a near-term concern [11].
Goldman Sachs Stock Jumps on Quarterly Beat
Schaeffers Investment Research· 2025-04-14 14:55
Core Viewpoint - Goldman Sachs Group Inc reported better-than-expected first-quarter results, with earnings of $14.12 per share and revenue of $15.06 billion, surpassing estimates of $12.35 per share and $14.81 billion in revenue [1] Group 1: Financial Performance - The company's record equities-trading revenue significantly contributed to the positive results, with CEO David Solomon expressing confidence in future performance [1] - Year-to-date, Goldman Sachs' stock is down 11.5% from its February 18 record high of $672.19, but it still maintains a year-over-year gain of 30.2% [2] Group 2: Market Activity - The stock's recent performance has led it to break above the 320-day moving average [2] - In options trading, call options are being picked up at double the average intraday rate, with 18,000 calls exchanged compared to 8,615 puts, indicating strong market interest [2] Group 3: Analyst Sentiment - Among the 23 brokerages covering Goldman Sachs, 13 have a "hold" rating, suggesting a cautious but optimistic outlook [3]
Goldman (GS) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
ZACKS· 2025-04-14 14:30
Financial Performance - For the quarter ended March 2025, Goldman Sachs reported revenue of $15.06 billion, a 6% increase year-over-year, and EPS of $14.12 compared to $11.58 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $15.02 billion, resulting in a surprise of +0.27%, while the EPS surprise was +11.09% against a consensus estimate of $12.71 [1] Key Metrics - Book Value Per Share was $344.20, slightly above the estimated $343.93 [4] - Total Assets Under Supervision (AUS) were $3,173 billion, below the estimated $3,187.21 billion [4] - Common equity tier 1 capital ratio was reported at 14.8%, slightly below the estimated 15% [4] - The leverage ratio was reported at 5.5%, matching the two-analyst average estimate [4] Revenue Breakdown - Net Revenues from Global Banking & Markets - FICC were $4.40 billion, below the estimated $4.57 billion, representing a year-over-year change of +1.9% [4] - Net Revenues from Asset & Wealth Management - Equity investments reported a loss of $5 million, significantly below the estimated $85 million, indicating a year-over-year change of -102.3% [4] - Net Revenues from Platform Solutions - Consumer platforms were $611 million, slightly below the estimated $621.01 million, showing a -1.1% change year-over-year [4] - Net Revenues from Global Banking & Markets - Equities were $4.19 billion, exceeding the estimated $3.76 billion, with a year-over-year increase of +26.6% [4] - Net Revenues from Asset & Wealth Management - Private banking and lending were $725 million, below the estimated $750.74 million, reflecting a year-over-year change of +6.3% [4] - Net Revenues from Platform Solutions - Transaction banking and other were $65 million, below the estimated $74.15 million, representing a year-over-year change of -18.8% [4] - Net Revenues from Global Banking & Markets - Advisory were $792 million, below the estimated $954.62 million, indicating a year-over-year change of -21.7% [4] - Total Net Revenues from Asset & Wealth Management were $3.68 billion, below the estimated $3.85 billion, reflecting a year-over-year change of -2.9% [4] Stock Performance - Shares of Goldman Sachs have returned -8.7% over the past month, compared to the Zacks S&P 500 composite's -3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]
Goldman Sachs (GS) Q1 Earnings and Revenues Beat Estimates
ZACKS· 2025-04-14 13:35
分组1 - Goldman Sachs reported quarterly earnings of $14.12 per share, exceeding the Zacks Consensus Estimate of $12.71 per share, and up from $11.58 per share a year ago, representing an earnings surprise of 11.09% [1] - The company posted revenues of $15.06 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.27%, and compared to year-ago revenues of $14.21 billion [2] - Over the last four quarters, Goldman has consistently surpassed consensus EPS and revenue estimates [2] 分组2 - Goldman shares have declined approximately 13.7% since the beginning of the year, while the S&P 500 has decreased by 8.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $10.83 on $14 billion in revenues, and for the current fiscal year, it is $44.97 on $56.34 billion in revenues [7] 分组3 - The Zacks Industry Rank indicates that the Financial - Investment Bank sector is currently in the bottom 42% of over 250 Zacks industries, suggesting potential underperformance compared to the top 50% of ranked industries [8] - BGC Group, another company in the same industry, is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year increase of 16%, with revenues anticipated to be $635.1 million, up 9.8% from the previous year [9][10]
Goldman Sachs' profit jumps as traders deliver gains
Fox Business· 2025-04-14 12:55
Goldman Sachs reported a 15% rise in first-quarter profit as market volatility led to record revenue in equities trading and boosted fixed income results. The Wall Street lender joined rivals JPMorgan Chase and Morgan Stanley in reporting higher profits. But investors have shifted their focus on to economic projections, which are being clouded by uncertainty over tariffs that could spur inflation and trigger a recession.Goldman's profit rose to $4.74 billion, or $14.12 per share, for the three months ended ...
Market turmoil lifts Goldman's trading, hurts dealmaking business
Business Insider· 2025-04-14 12:46
Goldman Sachs reported robust earnings for the first quarter of 2025, and while they beat analyst expectations, they also portrayed a "Tale of Two Cities"-type picture. Political uncertainty and a frenzy in global markets lifted the performance of businesses like trading, while leaving others, like advising on corporate dealmaking, hurting.On Monday, the firm reported net revenue of $15.06 billion during the first quarter of 2025, up about 8.6% from $13.9 billion in the previous quarter, which concluded a ...
Goldman Sachs delivers earnings beat after record quarter for equities traders
Proactiveinvestors NA· 2025-04-14 12:40
About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...
Goldman Sachs cashes in on stock market turmoil as bank posts $4.7B profit
New York Post· 2025-04-14 12:16
Goldman Sachs cashed in on stock market turmoil over President Donald Trump’s tariffs — with the bank’s stock traders bagging their highest revenues ever during the first three months of this year.The US financial giant released its first-quarter esults before the opening bell on Monday, posting net profits of $4.7 billion for the first quarter of 2025 and revenues of $15.06 billion.A filing released this morning showed that its trading division reported revenues of $4.2 billion, up 27% from the same period ...