Carrying on a week chock full of important earnings announcements, Goldman Sachs is expected to report its first quarter earnings result tomorrow at 8 am.Analysts polled by Bloomberg are expecting Goldman to report earnings of $3.55 per share, a figure which has risen steadily in the last month as analysts adjusted for increased investment banking and trading activity from earlier in the year. Revenue is expected at about $9.45 billion, a decrease from $13.64 billion a year ago.
Hopes for Goldman have been even more positive after JP Morgan beat earnings estimates last Friday—setting expectations high for banks reporting earnings this week. Although Goldman does not have as diversified operations as JPM, the latter bank’s 68% quarter-over-quarter increase in investment banking revenue for the first quarter was a positive sign for Goldman, which derives most of its revenues from such operations.
Key to watch in Goldman’s earnings report are revenues from Fixed Income, Currencies & Commodities unit and investing/lending—which are also the “two biggest swing factors,” Oppenheimer’s Chris Kotowski wrote in a research report last month.
Kotowski set his estimate for Goldman earnings at $3.31 per share, but added—on a positive note—that “We, and most other analysts that we know of, consistently “miss” the GS number, and if we miss again this quarter, it will almost certainly be the case that we are too low.”