David Solomon, chairman and CEO of Goldman Sachs, speaks on CNBC’s Squawk Box at the annual meeting of the World Economic Forum in Davos, Switzerland on January 17, 2024.
Adam Galic | CNBC
Goldman Sachs is expected to report fourth-quarter results 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
- Bank income from investing: $2.01 billion, per StreetAccount
Goldman Sachs is riding a wave of enthusiasm about a recovery in Wall Street trading.
The bank’s shares rose nearly 50% last year, outpacing major bank rivals, as the Federal Reserve’s easing cycle and Donald Trump’s election in November boosted expectations for mergers and stock deals.
Goldman’s fourth-quarter results will give investors a taste of what to expect this year, as investment banking and trading expenses are both expected to rise by double digits. Investment banking revenues for the sector rose 29% in the quarter, according to Dealogic figures, fueled by increasing activity in the advisory and equity capital markets.
In addition, the booming stock market late last year should boost results within the company’s asset management division, which CEO David Solomon has called the company’s growth engine.
For Solomon, the format couldn’t have been more different than a year earlier, in the wake of a strategic pivot away from an ill-fated quest for consumer financing. At the time, Solomon was under pressure to satisfy internal stakeholders, including Goldman partners, as consumer finance losses mounted and deals dried up on Wall Street due to rising interest rates and increased regulatory scrutiny.
JPMorgan Chase also reports results Wednesday, along with Wells Fargo and Citi Groupwhile Bank of America and Morgan Stanley will report on Thursday.
This story is developing. Check back later for updates.