Goldman Sachs fourth quarter results are coming — what the Street expects

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Goldman Sachs Group Inc. Chief Executive Officer David Solomon during a Bloomberg Television at the Goldman Sachs Financial Services Conference in New York, U.S. on Tuesday, December 6, 2022.

Michael Nagel | Bloomberg | Getty Images

Goldman Sachs is scheduled to report fourth-quarter results before the opening bell on Tuesday.

Here’s what Wall Street expects:

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  • Earnings: $5.48 per share, down 49% year over year, according to Refinitiv
  • Revenue: $10.83 billion, down 14% year-over-year.
  • Trading Revenue: Fixed Income $2.31 billion, Equities $2.14 billion
  • Investing Banking: $1.75 billion

How long will the investment banking drought last?

That’s one of the top questions analysts will ask Goldman CEO David Solomon.

While the fourth quarter was an ugly one for bankers – rivals of Wall Street JPMorgan Chase and Citigroup Each saw investment banking revenue fall nearly 60% last week – analysts doubt the likelihood of a recovery anytime later this year.

They’ll also want to hear Solomon’s take on headcount and spending after the bank laid off up to 3,200 employees last week, and details on Goldman’s consumer activities as they scale back ambitions there.

Goldman shares are up 8.9% for the year before open Tuesday, compared with a 6.7% gain for the KBW Bank Index.

Last week, JPMorgan Chase and Bank of America beat earnings expectations on rising net interest income Wells Fargo and Citigroup reported mixed results. MorganStanley should also publish results on Tuesday.

This story evolves. Please check again for updates.