Latest news with #GS
Miami Herald
3 days ago
- Business
- Miami Herald
Veteran trader parses Goldman Sachs Q2 report, offers surprising view
In 1869, a German immigrant named Marcus Goldman started a business in New York City in a one-room basement office next to a coal chute. The firm didn't stay in the basement for long. Don't miss the move: Subscribe to TheStreet's free daily newsletter The business grew at an astonishing pace until it became the legendary Goldman Sachs (GS) , one of the world's largest investment banks. Three U.S. treasury secretaries who came directly from Goldman Sachs - Robert Rubin, Henry Paulson and Steve Mnuchin and the firm's broader history of employees transitioning into high-level government positions inspired the nickname "Government Sachs." In 1987, more than a century after Marcus Goldman opened for business, TheStreet Pro's Stephen Guilfoyle applied for a job at the prestigious firm and was called in for an interview. "I had the Marine Corps on my resume, and I was going to night school, but I didn't know much about the business," he said in a recent column This was before the infamous stock market meltdown, when Guilfoyle - who is known as Sarge, in line with his rank as a sergeant - was working for the Pershing division of Donaldson, Lufkin & Jenrette. More Economic Analysis: Federal Reserve prepares strong message on long-term interest ratesMassive city workers union approves strikeAnalyst makes bold call on stocks, bonds, and gold "On Wall Street, some used to call them 'The Empire,'" he said "Others used to say that if you needed 1,000 hammers today, Goldman Sachs bought the hardware store yesterday. If you needed 1,000 birthday cakes today, Goldman bought the bakery yesterday." Guilfoyle said he had not known how elite people at the storied investment firm thought they were - but he soon found out. "The interviewer made a donkey's tail out of me, asked me questions I couldn't possibly answer, which may have been a test in hindsight," he said. "Finally, she asked me, 'What in the world makes you think you are worthy of working for Goldman Sachs?' " Needless to say, Guilfoyle didn't get the job. And so he moved on. "By 1998, I had become one of the more well-thought-of floor traders at First Boston during the dot-com bubble," he said. "I ran a section of the floor. I had been added to the execution side of the investment banking team. I was no longer a 'know nothing' looking for a job. I was being well compensated." And then about 11 years later - well, what do you know? - along comes Goldman Sachs looking to recruit Guilfoyle. "I laughed and laughed," he said. "I then told the recruiter that I would rather be out of work than work for Goldman Sachs. I never forgot how I was treated in their offices when I was really just a buck sergeant looking for a job." Many years later, the veteran trader did indeed find himself out of work, and it turned out to be a blessing. "I started my own business and have been working for myself for more than nine years now," he said. "Looking back, I can't believe that I ever allowed myself to work for someone else for so long. Had things not worked out the way they did, I never would have realized my potential." Still, he added, "I don't like the way that Goldman recruiter treated me on that day in 1987." On July 15, Goldman Sachs beat Wall Street's second-quarter earnings expectations, with profit jumping 22% and revenue surging 15% from a year ago. "Amid shifting market dynamics, we remained relentlessly focused on serving our clients with excellence," Chief Executive David Solomon said on the earnings call. "Our global client franchise has never been stronger, and I'm proud of how we've helped our clients navigate periods of heightened uncertainty." Goldman posted GAAP earnings per share of $10.91 on revenue of $14.58 billion. "These numbers not only crushed expectations but also compare very well to the year-ago EPS of $8.62, while reflecting year-over-year revenue growth of 14.5%," he said. Related: Microsoft analysts reboot stock price targets ahead of Q4 earnings Guilfoyle acknowledged his bad blood with Goldman Sachs, while noting that "I am sure no one still working there knows who I am. "I could be biased as I go through my analysis of the firm's second-quarter earnings, but I have never been a fan," he said. "I have traded the stock but never invested in the name, despite its success." Still and all, Guilfoyle analyzed Goldman Sachs's chart. The shares might be "setting up for another leg of the stock's recent rally," Guilfoyle said. From mid-February to well into May, the chart formed what technical analysts call a cup-and-handle pattern, with the stock running up from $620 to $726 and then pausing, Guilfoyle said. The stock now appears to be forming what's called a bullish pennant, which means the "uptrend is still in place," he said. Several investment firms also issued research reports following Goldman's earnings release. Argus boosted its price target on GS to $765 from $580 and affirmed a buy rating on the shares. Goldman's second quarter reflected record results in equities as well as strong advisory revenue, investment banking fees, and fixed-income, currency and commodities results, the firm said, according to The Fly. The investment banking environment, which had a few false starts in 2023 and 2024, has rebounded from the first-quarter tariff-related market turmoil and uncertainty that paused deal activity, Argus added. Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
3 days ago
- Business
- Yahoo
The Goldman Sachs Group Inc (GS) Q2 2025 Earnings Call Highlights: Record Revenues and ...
Net Revenues: $14.6 billion for the second quarter. Earnings Per Share (EPS): $10.91. Return on Equity (ROE): 12.8% for the quarter, 14.8% for the first half of the year. Global Banking and Markets Revenues: $10.1 billion for the quarter. Advisory Revenues: $1.2 billion, up 71% year-over-year. Equity Underwriting Revenues: $428 million, flat year-over-year. Debt Underwriting Revenues: $589 million, down 5% year-over-year. FICC Net Revenues: $3.5 billion, up 9% year-over-year. Equities Net Revenues: $4.3 billion, a record for the quarter. Asset and Wealth Management Revenues: $3.8 billion. Management and Other Fees: $2.8 billion, up 11% year-over-year. Private Banking and Lending Revenues: $789 million, up 12% year-over-year. Total Assets Under Supervision: $3.3 trillion, a record high. Alternative Assets Under Supervision: $355 billion. Net Interest Income: $3.1 billion for the second quarter. Total Loan Portfolio: $217 billion at quarter-end. Operating Expenses: $9.2 billion for the quarter. Effective Tax Rate: 20.2% for the first half of 2025. Capital Returned to Shareholders: $4 billion, including $957 million in dividends and $3 billion in stock repurchases. Common Equity Tier 1 Ratio: 14.5% at the end of the second quarter. Warning! GuruFocus has detected 10 Warning Signs with GS. Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points The Goldman Sachs Group Inc (NYSE:GS) reported strong financial performance in Q2 2025 with net revenues of $14.6 billion and earnings per share of $10.91. The company's Investment Banking division saw a 30% year-over-year increase in announced M&A volumes, indicating a resilient dealmaking environment. Asset and Wealth Management achieved record client assets of $1.7 trillion, with continued momentum in alternatives and long-term fee-based net inflows. The firm set a new record for total assets under supervision at $3.3 trillion, marking the 30th consecutive quarter of long-term fee-based net inflows. The Board approved a 33% increase in the quarterly dividend, reflecting confidence in the firm's financial durability and commitment to returning capital to shareholders. Negative Points Despite strong performance, there is ongoing uncertainty in industries sensitive to trade policy, which could impact future results. The company faces challenges in the harvesting environment for private equity-type portfolio assets, which may affect future returns. Geopolitical concerns, particularly in the Middle East, and unresolved trade agreements pose risks to the global economic outlook. The firm is navigating a complex regulatory environment, with ongoing discussions around capital requirements and stress testing transparency. There is a need for more transparency in the capital process, which currently lacks clarity and affects strategic planning. Q & A Highlights Q: What will Goldman Sachs do with its excess capital now that regulatory reforms have been implemented? A: David Solomon, Chairman and CEO, stated that the first priority is to deploy capital towards client franchises to produce accretive returns and support client activity. Opportunities are seen in M&A and financing. After that, the focus will be on returning capital to shareholders through dividends and buybacks. Q: How is Goldman Sachs handling the challenging environment for harvesting historical principal investments? A: Denis Coleman, CFO, explained that while asset prices and credit markets are improving, the environment for harvesting private equity-type assets remains challenging. The firm is committed to reducing historical principal investments, which now stand at about $8 billion, and will continue to do so as market conditions allow. Q: What is Goldman Sachs' approach to capital deployment opportunities, particularly regarding inorganic acquisitions? A: David Solomon emphasized that while the firm is always looking for ways to accelerate its franchise, especially in Asset and Wealth Management, the bar for significant acquisitions is very high. Opportunities must align with strategic priorities and offer a high level of confidence in the people and cultural fit. Q: How does Goldman Sachs view the impact of AI on efficiency and growth? A: David Solomon highlighted that AI presents a significant opportunity to automate processes, create efficiency, and drive productivity. The firm is investing in AI to enhance software development and client service, which will lead to both cost savings and growth opportunities. Q: What is Goldman Sachs' outlook on M&A activity, and what gives them confidence in this area? A: David Solomon noted that announced M&A is up 30% year-over-year, and the backlog driven by Advisory growth is strong. The level of dialogue with clients has increased significantly, and there is confidence in regulatory environments allowing for significant industry consolidation. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Goldman Gains as Q2 Earnings Beat Estimates, Boosts Dividend 33.3%
The Goldman Sachs Group, Inc.'s GS second-quarter 2025 adjusted earnings per share of $10.91 surpassed the Zacks Consensus Estimate of $9.43. This compares favorably with $8.62 in the year-ago quarter. Shares of the company gained 1.6% in the pre-market trading on better-than-expected results. The volatile market lifted Goldman's net revenues in Equities by 36% year over year to $4.3 billion. Fixed income, currency and commodities trading revenues rose 9% year over year to $3.5 billion. Investment Banking (IB) fees rose 26% year over year to $2.2 billion in the quarter, driven by significantly higher net revenues in Advisory, reflecting strength in the Americas and EMEA. Goldman's results benefited from solid growth in the Global Banking & Markets division. Yet, increased expenses and provision were concerning. Net earnings (GAAP basis) of $3.7 billion increased 22% from the prior-year quarter. GS's Revenues & Expenses Increase Net revenues rose 15% to $14.6 billion for the quarter from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate by 8.1%. Total operating expenses increased 8% year over year to $9.2 billion. Provision for credit losses was $384 million, up 36% from the prior-year quarter. Goldman's Quarterly Segmental Performance: Mixed Bag The Asset & Wealth Management division generated revenues of $3.8 billion in the reported quarter, down 3% year over year. The decrease reflected significantly lower net revenues in equity investments and debt investments, partially offset by higher management and other fees. Firmwide assets under supervision were $3.3 trillion, up 12.2% from the prior-year quarter. The Global Banking & Markets division recorded revenues of $10.1 billion, which increased 24% year over year. The improvement was driven by a rise in net revenues in Equities (including an increase in net revenues in financing) and strong performances in Fixed income, currency and commodities. The Platform Solutions division's revenues were $685 million, up 2% year over year. GS's Capital Ratio Declines As of June 30, 2025, the standardized Common Equity Tier 1 capital ratio was 14.5%, down from 14.8% as of June 30, 2024. The company's supplementary leverage ratio was 5.3%, down from 5.4% in the year-ago quarter. Goldman's Capital Distribution Update In the reported quarter, GS returned $3.96 billion in capital to common shareholders. This included $3 billion in share repurchases and common stock dividends of $957 million. The company cleared the 2025 Fed stress test and increased the quarterly dividend to $4.00 per common share, marking an increase of 33.3% from the prior payout. The dividend will be paid out on Sept. 29, 2025, to common shareholders of record on Aug. 29, 2025. Our View on GS Goldman's focus on IB and trading businesses, along with strong deal-making pipelines, will likely support the top line. Active client engagement and a solid position in announced and completed mergers and acquisitions globally are likely to act as tailwinds in the upcoming period. However, a rise in expenses poses near-term concerns. The Goldman Sachs Group, Inc. Price, Consensus and EPS Surprise The Goldman Sachs Group, Inc. price-consensus-eps-surprise-chart | The Goldman Sachs Group, Inc. Quote Currently, GS carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Earnings Dates & Expectations of Other Investment Banks Raymond James Financial Inc. RJF is slated to report quarterly results on July 23. The Zacks Consensus Estimate for RJF's fiscal third-quarter 2025 earnings has been revised upward to $2.37 per share over the past seven days. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. LPL Financial Holdings Inc. LPLA is expected to report quarterly results on July 31. The Zacks Consensus Estimate for LPLA's second-quarter 2025 earnings has been revised downward to $4.26 per share over the past seven days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Raymond James Financial, Inc. (RJF) : Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
Goldman Gains as Q2 Earnings Beat Estimates, Boosts Dividend 33.3%
The Goldman Sachs Group, Inc. 's GS second-quarter 2025 adjusted earnings per share of $10.91 surpassed the Zacks Consensus Estimate of $9.43. This compares favorably with $8.62 in the year-ago quarter. Shares of the company gained 1.6% in the pre-market trading on better-than-expected results. The volatile market lifted Goldman's net revenues in Equities by 36% year over year to $4.3 billion. Fixed income, currency and commodities trading revenues rose 9% year over year to $3.5 billion. Investment Banking (IB) fees rose 26% year over year to $2.2 billion in the quarter, driven by significantly higher net revenues in Advisory, reflecting strength in the Americas and EMEA. Goldman's results benefited from solid growth in the Global Banking & Markets division. Yet, increased expenses and provision were concerning. Net earnings (GAAP basis) of $3.7 billion increased 22% from the prior-year quarter. GS's Revenues & Expenses Increase Net revenues rose 15% to $14.6 billion for the quarter from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate by 8.1%. Total operating expenses increased 8% year over year to $9.2 billion. Provision for credit losses was $384 million, up 36% from the prior-year quarter. Goldman's Quarterly Segmental Performance: Mixed Bag The Asset & Wealth Management division generated revenues of $3.8 billion in the reported quarter, down 3% year over year. The decrease reflected significantly lower net revenues in equity investments and debt investments, partially offset by higher management and other fees. Firmwide assets under supervision were $3.3 trillion, up 12.2% from the prior-year quarter. The Global Banking & Markets division recorded revenues of $10.1 billion, which increased 24% year over year. The improvement was driven by a rise in net revenues in Equities (including an increase in net revenues in financing) and strong performances in Fixed income, currency and commodities. The Platform Solutions division's revenues were $685 million, up 2% year over year. GS's Capital Ratio Declines As of June 30, 2025, the standardized Common Equity Tier 1 capital ratio was 14.5%, down from 14.8% as of June 30, 2024. The company's supplementary leverage ratio was 5.3%, down from 5.4% in the year-ago quarter. Goldman's Capital Distribution Update In the reported quarter, GS returned $3.96 billion in capital to common shareholders. This included $3 billion in share repurchases and common stock dividends of $957 million. The company cleared the 2025 Fed stress test and increased the quarterly dividend to $4.00 per common share, marking an increase of 33.3% from the prior payout. The dividend will be paid out on Sept. 29, 2025, to common shareholders of record on Aug. 29, 2025. Our View on GS Goldman's focus on IB and trading businesses, along with strong deal-making pipelines, will likely support the top line. Active client engagement and a solid position in announced and completed mergers and acquisitions globally are likely to act as tailwinds in the upcoming period. However, a rise in expenses poses near-term concerns. The Goldman Sachs Group, Inc. Price, Consensus and EPS Surprise Currently, GS carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Earnings Dates & Expectations of Other Investment Banks Raymond James Financial Inc. RJF is slated to report quarterly results on July 23. The Zacks Consensus Estimate for RJF's fiscal third-quarter 2025 earnings has been revised upward to $2.37 per share over the past seven days. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. LPL Financial Holdings Inc. LPLA is expected to report quarterly results on July 31. The Zacks Consensus Estimate for LPLA's second-quarter 2025 earnings has been revised downward to $4.26 per share over the past seven days. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Raymond James Financial, Inc. (RJF): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
Goldman Sachs' Results Top Views on Equity Trading, Investment Banking Gains
Goldman Sachs (GS) logged stronger-than-expected second-quarter results, buoyed by record equity tra Sign in to access your portfolio
