Goldman Sachs to Report Quarterly Earnings

EPS expected to be 14.5% lower than 1 year ago

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The Goldman Sachs Group Inc. (GS, Financial) will release its figures for the third quarter before the New York Stock Exchange opens Oct. 17.

For the quarter in question that closed Sept. 30, analysts forecast that Goldman Sachs will close with an EPS of $4.17 on average. This is a mean of 23 estimates and a 14.5% decrease from one year ago earnings.

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Source: Yahoo Finance

As you can see in the chart above, expectations on earnings range between a low of $3.6 and a high of $4.5 and are backed on a quarterly figure for revenue that is forecasted by 18 analysts to have come in at $7.54 billion. This figure is an average, and it represents a 7.70% decline on a year-over-year basis.

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Source: Yahoo Finance

In addition, analysts forecast a 9.30% growth in Goldman Sachs’ earnings per share to $19.88 in full fiscal 2018 from $18.19 in full fiscal 2017.

For the following five years, analysts forecast Goldman Sachs’ earnings will grow every year according to an average rate of 11.18%.

According to GuruFocus, Goldman Sachs’ profitability and growth rates 4 out of a total score of 10.

As of the most recent quarter’s figures of balance sheets, Goldman Sachs has about $226.441 billion in cash on hand and securities, $506.041 billion in long-term investments, which represents 55.8% of total assets, and $819.843 billion in total liabilities. Total stockholder equity is valued $86.675 billion.

GuruFocus assigns Goldman Sachs a financial strength of 4 out of 10.

Goldman Sachs has 388.21 million shares outstanding of which 350.54 million is the float. The percentage of shares outstanding held by insiders is 1.79% while that one held by institutions is 79.31%.

Among the top institutional holders, Blackrock Inc. held 6.29% of Goldman Sachs’ total volume of shares outstanding at the end of June while The Vanguard Group held 6.22% and State Street Corp. held 5.80%.

Goldman Sachs has been downtrending in the last five trading days. The stock is quite flat year to date. Goldman Sachs is trading at $238.53 per share with a market capitalization of $92.3 billion, a price-book (P/B) ratio of 1.24, a price-earnings (P/E) ratio of 12.53, a price-sales (P/S) of 3.12 and a forward P/E ratio of 11.76.

Goldman Sachs distributes an annual dividend of $3 – through quarterly payments of 75 cents – to its shareholders for a dividend yield of 1.22% versus a Standard & Poor's 500 current dividend yield of 1.89%.

According to the Peter Lynch chart updated with second-quarter earnings, Goldman Sachs is undervalued by the New York Stock Exchange.

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Let's see if after the third-quarter earnings, the Peter Lynch Earnings Line for Goldman Sachs still stays above the market value of the stock.

Goldman Sachs has a recommendation rating of 2.6 out of a total of 5 and an average target price of $241.96 per share. The latter figure is a mean of 25 estimates of analysts who were surveyed on Goldman Sachs’ target price and range between a low of $185 per share and a high of $275 per share.

Disclosure: I have no positions in Goldman Sachs Group.