The number is out!
At $8.6 billion in revenue, Goldman’s quarterly number is behind expectations of about $9 billion or so. EPS was slightly ahead of expectations.
The stock is off a bit in pre-market trading. The full announcement is here.
Fixed income trading revenue, a key metric, fell 13% sequentially to $3.7 billion.
Investment banking revenue, on the other hand, did rise to $1.1 billion from just over $900 million in Q3. Deal activity is rising.
This report will definitely take the sheen off Goldman’s reputation.
It recently was forced to issue a new set of governance guidelines.
Background: Analysts are looking for EPS of $3.76 on revenue of $9 billion.
Deal Journal has a good breakdown of the key things to watch. Chief among them. What’s happening to Fixed income trading? Some see it down 15% from Q3.
Other key areas: Compensation levels. Will it be above or below 40%?