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On Tuesday July 19th, Goldman Sachs (GS - Free Report) will release its Q2 earnings results. The company is currently a Zacks Rank #3 (Hold) and shares are down about 12.4% year-to-date.
David Bartosiak looked into Goldman Sachs’ past earnings, looked at what is currently going on with the company, and gave us his thoughts on their upcoming earnings announcement.
Furthermore, Dave looked into some potential options trades for investors looking to make a play on Goldman Sachs ahead of earnings.
Goldman Sachs in Focus
Goldman Sachs is a global investment banking and securities firm, providing financial services such as online banking, investing, advisory and financing services to corporations, financial institutions, governments, and consumers.
Goldman Sachs is coming off of an earnings beat of 4.28% in its Q1 2016 earnings report, posting an EPS that was $0.11 higher than the Zacks Consensus Estimate.
GS has an average EPS surprise of 12.58 % for the last four quarters. In Q2 2015, GS beat estimates by 28.4% before missing estimates in Q3 2015 by 5.8%. However, in the last two quarters of 2015 GS beat both Consensus Estimates by 23.5% and 4.3% respectively.
Heading into this earnings report, our Most Accurate Estimate for Goldman Sachs is $3.01, the same as the Zacks Consensus Estimate.
The financial services sector has experienced pains due to the low interest rates that have characterized the post-Great Recession global economy. This, coupled with Brexit as well as the uncertainty that followed was believed to be putting financial services firms like GS in a difficult spot. Goldman Sachs is one of many banks that are considering moving jobs out of post-Brexit London.
The recent macroeconomic climate has been cause for uncertainty and it shows, with a current 71% agreement in downward earnings estimate revisions for GS this quarter. The current Consensus Estimate reflects a downward shift of $0.24 from the estimates of 60 days ago.
Outlook for the financial services sector is gotten better however, particularly with the recent earnings reports of JP Morgan Chase (JPM) and Citigroup (C), who beat earnings expectations by $0.12 and $0.14 per share respectively. The current trend may indicate that the financial services sector has successfully adapted to the current economic environment.
Subscribe to our channel to be notified of future live streams and make sure to check out our other videos for more stock information.
Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He’s also the host of a light-hearted, Millennial-minded series of videos called “Trending Stocks.”
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
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How to Trade Goldman Sachs (GS) Ahead of Earnings
On Tuesday July 19th, Goldman Sachs (GS - Free Report) will release its Q2 earnings results. The company is currently a Zacks Rank #3 (Hold) and shares are down about 12.4% year-to-date.
David Bartosiak looked into Goldman Sachs’ past earnings, looked at what is currently going on with the company, and gave us his thoughts on their upcoming earnings announcement.
Furthermore, Dave looked into some potential options trades for investors looking to make a play on Goldman Sachs ahead of earnings.
Goldman Sachs in Focus
Goldman Sachs is a global investment banking and securities firm, providing financial services such as online banking, investing, advisory and financing services to corporations, financial institutions, governments, and consumers.
Goldman Sachs is coming off of an earnings beat of 4.28% in its Q1 2016 earnings report, posting an EPS that was $0.11 higher than the Zacks Consensus Estimate.
GS has an average EPS surprise of 12.58 % for the last four quarters. In Q2 2015, GS beat estimates by 28.4% before missing estimates in Q3 2015 by 5.8%. However, in the last two quarters of 2015 GS beat both Consensus Estimates by 23.5% and 4.3% respectively.
GOLDMAN SACHS Price, Consensus and EPS Surprise
GOLDMAN SACHS Price, Consensus and EPS Surprise | GOLDMAN SACHS Quote
Heading into this earnings report, our Most Accurate Estimate for Goldman Sachs is $3.01, the same as the Zacks Consensus Estimate.
The financial services sector has experienced pains due to the low interest rates that have characterized the post-Great Recession global economy. This, coupled with Brexit as well as the uncertainty that followed was believed to be putting financial services firms like GS in a difficult spot. Goldman Sachs is one of many banks that are considering moving jobs out of post-Brexit London.
The recent macroeconomic climate has been cause for uncertainty and it shows, with a current 71% agreement in downward earnings estimate revisions for GS this quarter. The current Consensus Estimate reflects a downward shift of $0.24 from the estimates of 60 days ago.
Outlook for the financial services sector is gotten better however, particularly with the recent earnings reports of JP Morgan Chase (JPM) and Citigroup (C), who beat earnings expectations by $0.12 and $0.14 per share respectively. The current trend may indicate that the financial services sector has successfully adapted to the current economic environment.
Subscribe to our channel to be notified of future live streams and make sure to check out our other videos for more stock information.
Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He’s also the host of a light-hearted, Millennial-minded series of videos called “Trending Stocks.”
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.