Goldman Sachs (GS) reported earnings on Tue 18 Apr 2017 (b/o)

** charts before earnings **

 

** charts after earnings **

 

 ** one month later **

Goldman Sachs misses by $0.04, misses on revs; Raises dividend to $0.75 from $0.65:

• Reports Q1 (Mar) earnings of $5.15 per share, $0.04 worse than the Capital IQ Consensus of $5.19; revenues rose 26.6% year/year to $8.03 bln vs the $8.33 bln Capital IQ Consensus.
  • RoE was 11.4%.
• Investment Banking
  • Net revenues in Investment Banking were $1.70 billion for the first quarter of 2017, 16% higher than the first quarter of 2016 and 15% higher than the fourth quarter of 2016.
  • Net revenues in Financial Advisory were $756 million, 2% lower than the first quarter of 2016.
  • Net revenues in Underwriting were $947 million, 37% higher than the first quarter of 2016, due to significantly higher net revenues in equity underwriting.
  • The firm's investment banking transaction backlog decreased compared with both the end of 2016 and the end of the first quarter of 2016.
• Institutional Client Services
  • Net revenues in Institutional Client Services were $3.36 billion for the first quarter of 2017, 2% lower than the first quarter of 2016 and 7% lower than the fourth quarter of 2016.
  • Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.69 billion for the first quarter of 2017, essentially unchanged compared with the first quarter of 2016, reflecting significantly higher net revenues in mortgages and higher net revenues in interest rate products, offset by significantly lower net revenues in commodities and currencies and lower net revenues in credit products.
  • Net revenues in Equities were $1.67 billion for the first quarter of 2017, 6% lower than the first quarter of 2016, due to lower net revenues in commissions and fees, reflecting lower volumes in the United States, and lower net revenues in securities services, primarily reflecting the impact of changes in the composition of customer balances.
• Investing & Lending
  • Net revenues in Investing & Lending were $1.46 billion for the first quarter of 2017, significantly higher than the first quarter of 2016 and essentially unchanged compared with the fourth quarter of 2016.
• Investment Management
  • Net revenues in Investment Management were $1.50 billion for the first quarter of 2017, 12% higher than the first quarter of 2016 and 7% lower than the fourth quarter of 2016. The increase in net revenues compared with the first quarter of 2016 was primarily due to higher incentive fees and higher management and other fees.
• Expenses
  • Operating expenses were $5.49 billion for the first quarter of 2017, 15% higher than both the first quarter of 2016 and the fourth quarter of 2016.
  • Non-compensation expenses were $2.20 billion for the first quarter of 2017, 5% higher than the first quarter of 2016 and 6% lower than the fourth quarter of 2016.
• Book value per common share was $184.98 and tangible book value per common share was $175.05, both based on basic shares (10) of 409.3 million as of March 31, 2017.
• On April 17, 2017, the Board of Directors of The Goldman Sachs Group, Inc. (Board) increased the firm's quarterly dividend to $0.75 per common share from $0.65 per common share.