16 Apr

Lower Q1 Revenue Drags Goldman Sachs Stock Down


Key takeaways from Q1

Goldman Sachs (GS) posted mixed first-quarter results yesterday, with its revenue missing analysts’ estimate. It fell 13% YoY (year-over-year) due to lower revenue from equity underwriting and interest rate products, and lower net gains from investments in private equities.

Citigroup’s (C) and Wells Fargo’s (WFC) revenue also fell in the first quarter. Citigroup’s fell 2% YoY and missed analysts’ estimate, reflecting lower equity revenue. Meanwhile, Wells Fargo’s revenue beat analysts’ sales estimate but fell due to net interest income decreasing because of lower loans and deposits. Bank of America’s (BAC) revenue also missed analysts’ estimate, due to lower non-interest income.

Lower Q1 Revenue Drags Goldman Sachs Stock Down

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

On the contrary, higher interest, loans, deposits, and non-interest income boosted JPMorgan Chase’s (JPMrevenue by 5% in the first quarter, helping it beat expectations.

Goldman Sachs’ earnings fell 17.8% YoY but beat analysts’ estimate. Lower revenue and increased provision for credit losses weighed on its bottom line.

Q1 financials

In the first quarter, Goldman Sachs’s revenue fell 13% YoY to $8.81 billion, missing analysts’ estimate of $8.99 billion. Its revenue was dragged down by lower Institutional Client Services and Investing & Lending revenue. Goldman Sachs’ provision for credit losses increased YoY to $224 million from $44 million, while its EPS fell 17% YoY to $5.71 due to lower revenue. However, its EPS beat analysts’ estimate of $4.89. Goldman Sachs stock fell ~4% to close at $199.91 yesterday.

Latest articles

US crude oil production has more than doubled since 2009 and grew by 1.1% over the last year. Currently, there are 133 operable refineries in the US.

The cannabis industry is fighting against the ongoing US-China trade war and recessionary worries, which have hurt valuations across the global market.

Higher revenues, increased ticket prices, and lower fuel costs are likely to drive American Airlines' Q3 earnings higher despite its Boeing MAX woes.

HEXO plans to report its Q4 earnings before the market opens on October 24. October has been tough for Hexo, with its stock falling 31.2% as of October 18.

Today, Advanced Micro Devices (AMD) rose 4% to over $32, making it one of the top Nasdaq gainers. Morgan Stanley raised its price target for AMD stock.

Early in 2019, President Donald Trump warned that China could overtake the US as a global power. He vowed that this would not happen under his leadership.