Goldman Sachs Group, Inc. (NYSE: GS) is scheduled to release its fourth-quarter earnings before the opening bell on Wednesday, January 19, 2011. Analysts, on average, expect the company to report earnings of $4.03 per share on revenue of $9.26 billion. In the year ago quarter, the company reported earnings of $8.20 per share on revenue of $9.62 billion.
The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide.
The Goldman Sachs Group, Inc., together with its subsidiaries, provides various investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Goldman Sachs operates through three main segments: Investment Banking, Trading and Principal Investments and Asset Management and Securities Services.
In the preceding third quarter, the New York-based company's net income was $1.9 billion, or $2.98 a share, compared to $3.19 billion, or $5.25 a share, in the year-earlier period. Revenue declined to $8.90 billion from $12.3 billion. Analysts, on average, expected the company to report earnings of $2.28 per share on revenue of $7.92 billion.
Though most of the major banks had to absorb extraordinary shocks from the recession, Goldman maintained consistent profitability throughout the downturn in the economy. Despite the impact on earnings power from the recent financial reform law and continuing pressure on trading revenues, Goldman is expected to deliver, based on its prudent business model and strong fundamentals.
The company has benefited from its well managed global franchise, strong capital base and leading position in investment banking, capital markets, trading, and asset management business. Though the new financial regulatory reform will remain a challenge for Goldman’s top line, it has taken proactive measures to strengthen its business model while complying with such regulatory changes.
Recently, Goldman Sachs invested $450 million in Facebook, valuing the popular social networking site at $50 billion. Goldman is planning to create a "special purpose vehicle" to allow high-net-worth clients to invest in Facebook. According to the sources, Goldman could pool money -- as much as $1.5 billion -- from thousands of investors for a stake in Facebook.
Among other developments, Goldman Sachs Group said that it will sell its stake in Accordia Golf Co., ending an almost decade-long investment in the sport in Japan. The stake is worth about 37 billion yen ($445 million).
In terms of stock performance, Goldman Sachs shares have gained nearly 12 percent over the past year.
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