Goldman Sachs Exceeds Expectations with Strong Q2 Earnings, Analyst Confident in Future Prospects

JP Morgan analyst Kian Abouhossein shared insights on The Goldman Sachs Group, Inc. (NYSE: GS) second-quarter fiscal year 2024 earnings, which were recently disclosed. The banking giant reported a revenue of $12.730 billion, surpassing the consensus expectation of $12.456 billion. Additionally, Goldman Sachs posted a GAAP EPS of $8.62, higher than the anticipated $8.35. Abouhossein highlighted that the reported EPS exceeded their estimate by 5%, indicating a stronger performance than initially projected.

The analyst noted Goldman Sachs’ $3.5 billion share buyback during the quarter, which greatly exceeded JP Morgan’s $1 billion. Abouhossein expressed confidence in the future capital returns from the bank, emphasizing the strong earnings generation. However, he pointed out uncertainties surrounding the finalization of Basel 3 regulations. Despite these uncertainties, the analyst anticipates slight upgrades to consensus EPS for 2024 and has assigned an Overweight rating to the stock.

Investors interested in exposure to Goldman Sachs can consider ETFs such as IShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and Invesco KBW Bank ETF (KBWB). As of the last check on Monday, GS shares were trading up 1.22% at $485.73. The content was crafted with the assistance of AI tools and was reviewed by Benzinga editors. Please note that Benzinga does not offer investment advice, and all rights to the information are reserved.