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Banking, Stocks

“Goldman Sachs misses revenue estimates after taking $470 million hit on Marcus loans”

Goldman Sachs posted first-quarter profit on Tuesday that missed analysts’ expectations for revenue after taking a $470 million hit tied to the sale of consumer loans.

Here’s what the company reported:

  • Earnings: $8.79 a share vs. $8.10 estimate from Refinitiv
  • Revenue: $12.22 billion vs. $12.79 billion

The bank said earnings fell 18% to $3.23 billion, or $8.79 a share, topping the estimate of analysts surveyed by Refinitiv. That EPS beat was also driven by Goldman’s sale of consumer loans because it allowed the bank to released $440 million in reserves for loan losses, which added roughly $1.20 to per share earnings, Mike Mayo of Wells Fargo said in a research note.

Companywide revenue fell 5% to $12.22 billion, below estimates on the consumer loan hit and weaker-than-expected bond trading results.

Shares of the New York-based bank slipped 3.6% in premarket trading…”

https://www.cnbc.com/2023/04/18/goldman-sachs-gs-earnings-1q-2023.html

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