The company missed its earnings target by the largest amount in a decade.
This week, investment bank and finance company Goldman Sachs posted its latest earnings report, and the numbers aren’t doing them any favors. The company’s quarterly profit is down by 66% compared to last year, dropping to $3.32 per share versus a $5.48 per share value previously estimated by analysts. Overall, the company’s revenue came in at $10.59 billion, also missing the analyst estimate of $10.83 billion.
“Widely expected to be awful, Goldman Sachs’ Q4 results were even more miserable than anticipated,” Octavio Marenzi, CEO of Wall Street consultancy Opimas, said in an email to clients. “Revenues were largely in line with forecasts, but earnings took a big hit. The real problem lies in the fact that operating expenses shot up 11%, while revenues tumbled.”
“Against a challenging economic backdrop, we delivered double-digit returns for our shareholders in 2022,” Goldman CEO David Solomon said in a press release. “Our clear, near-term focus is realizing the benefits of our strategic realignment which will strengthen our core businesses, scale our growth platforms and improve efficiency.”
Goldman Sachs and Morgan Stanley recorded lower fourth-quarter profits on a big slowdown in dealmaking https://t.co/3IqrXzpCMW
— The Wall Street Journal (@WSJ) January 17, 2023
As a direct result of this report, Goldman Sachs’ share values dropped by 2.8% during trading this morning.