The Goldman Sachs Group, Inc. ($GS) Earnings (Q3 FY22)

 The Goldman Sachs Group, Inc. ($GS) Earnings and Opinion


Goldman Sachs is a company in the Financial Services sector and operates in the Capital Markets industry. The company provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. Goldman Sachs was founded in 1869 and is headquartered in New York, New York. The company went public on the stock market in 1999.

Goldman Sachs Earnings Results: 

  • Revenue of $11.98B beating expectations of $11.43B
  • Investment Banking Revenue of $1.54B missing expectations of $1.74B
  • Net Interest Income of $2.04B missing expectations of $2.05B
  • Total Net Flows of $27B beating expectations of $12.28B
  • Adj Diluted EPS of $8.25 beating expectations of $7.75
Opinion:
Goldman Sachs is currently trading higher in todays session. The company reported earnings before the market opened this morning. A lot of the banks are claiming that they are laying off workforce, but latest reports shoe that Goldman Sachs actually had a higher employee count than the previous 3 months. The company saw Fixed Income showed a 43% profit plunge. Goldman Sachs has plans to turn its banking and trading into one unit. The company also shook up leadership ranks for the 3rd time in the last 4 years. This is a little uncalled for because too much shuffling around can lead to lower stability. In turn, will lead to a sporadic workplace in which people are working on too many different things. I would be surprised to see another shake up in the near term. Hopefully this reshuffling settles and the leaders perform their task to status quo. The company was right up to expectations on the financial report. They saw a nice revenue metric and a nice EPS metric. It will be interesting to see the tide change with the combination of units into one business. As far as valuation goes, BEst P/E ratio is at 8.65, which is lower than peers. The ROE is at 23.45%, which is higher than the 20.13% median. 5 year CAGR has a nice valuation at 29.07, which is almost doubt the average. Overall, it seems as if Goldman Sachs is undervalued right now. In my opinion, Goldman Sachs is probably one of the more prestigious capital market companies. I would definitely put my money towards them when selecting a company to invest in this industry. The company will find some nice success when putting together the different businesses they offer. I am long Goldman Sachs $GS.


*Information from Bloomberg and Yahoo Finance

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