Goldman Sachs touts enormous earnings beat as shares carry Dow higher

Goldman blows Wall Street out of water as Q4 earnings season begins.
Bank earnings per share came in 43% higher than Wall Street consensus.
Revenue rose 22% YoY, owing largely to the Global Banking & Market unit.

Clay Webster FXStreet

Goldman Sachs (GS) kicked off the Q4 earnings cycle with a shotgun blast. While fellow Dow Jones alum JPMorgan (JPM) and Citigroup (C) boasted healthy gains in profits, Goldman stole the show.

The Wall Street bank soared more than 6% to $606 on Wednesday after unveiling an enormous beat to expectations. As the biggest holding in the Dow Jones Industrial Average (DJIA), Goldman led the index to a 1.7% gain by mid-afternoon. The Dow has risen more than 3% this week alone, and Wednesday's CPI print only helped matters as core inflation arrived below expectations.

Goldman Sachs stock news

Goldman reported $11.95 in GAAP earnings per share in the fourth quarter, which was $3.60 or 43% higher than the consensus. Revenue of $13.87 billion also arrived more than $1.4 billion ahead of expectations. That figure was more than 22% above the prior Q4 a year earlier.

The outperformance was rather widespread across the bank, but the Global Banking & Market segment in particular held outsize importance. Net revenue came in at $8.48 billion, up 33% YoY.

Asset & Wealth Management revenue of $4.72 billion rose 8% YoY. Platform Solutions revenue just under $600 million rose 18% from a year earlier.

Total assets under management rose 12% YoY to $3.14 trillion, while book value per share rose more than 7% in 2024 to $336.77.

Net interest income of $2.34 billion rose by about $1 billion from a year earlier.

Goldman Sachs stock forecast

Goldman shares have rallied above the recent resistance near $593, and $600 seems like support for now. The top trendline that has worked since March 2024 leads us to expect GS stock to run up to $645 before growing heavy.

The 20-day Simple Moving Average (SMA) is still at $575, but expect it to rise to $600 by early February. The Relative Strength Index (RSI) is only at 63, so there is no danger of hitting overbought levels yet, and the rally likely will continue for several weeks.

GS daily stock chart

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.