Goldman Shares Fall on Imperfect Quarterly Results. Here's Our Advice on the Stock From Here
Our thesis on the investment banking giant remains intact despite some blemishes in its first-quarter earnings.
TL;DR
- Goldman Sachs' Q1 revenue of $17.23 billion and EPS of $17.55 exceeded LSEG estimates.
- Shares fell over 2% despite strong earnings, influenced by renewed Iran war tensions.
- Investment banking, the firm's largest segment, saw revenue surge 48% year over year.
- The bank's efficiency ratio improved to 60.5%, and return on tangible common equity advanced.
- Despite missing CET1 ratio expectations, it remains comfortably above regulatory minimums.
- Goldman Sachs repurchased $5 billion worth of stock in the first quarter.
- Global banking and markets division reported record quarterly revenue of $12.74 billion.
- Fixed income, currency, and commodities (FICC) revenue fell 10% year over year but increased 29% sequentially.
- Asset and wealth management revenue advanced 10% year over year, with assets under supervision reaching a record $3.65 trillion.
- Analysts maintain a price target of $1,050 and a 'buy on a pullback' rating.