Goldman Sachs Beats Analyst Views, Q4 Profit More Than Doubles (GS)

Investment banking giant Goldman Sachs Group, Inc. (GS) released its fourth quarter earnings report on Wednesday posting earnings that easily beat analyst estimates.

The New York, New York-based company posted a fourth quarter net income of $2.89 billion, or $5.60 per share, compared to a year earlier’s profit of $1.01 billion, or $1.84 per share. According to Thomson Reuters, analysts were expecting Goldman Sachs earnings per share to come in at $3.78.

Revenue for the quarter came in at $9.24 billion, up 53% from a year ago. Analysts were expecting revenue to be $7.91 billion.

Goldman Sachs was helped by strong results from debt and equity underwriting, as well as an increased financial advisory revenue. More over, expenses were $22.96 billion for fiscal year 2012, unchanged from the year before. This unchanged operating expense number helped boost profits.

“While economic conditions remained challenging for much of last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders,” said Lloyd C. Blankfein, Goldman Sachs CEO. “The firm’s strategic position provides a solid basis on which to grow and generate superior returns.”

Goldman Sachs shares were up $3.41, or +2.51%, during premarket trading on Wednesday. The stock is up +37.01% over the past year.

The Bottom Line
Shares of Goldman Sachs (GS) have a 1.48% dividend yield, based on last night’s closing stock price of $135.59. The stock has technical support in the $125-$128 price area. If the shares can firm up, we see overhead resistance around the $140-$149 price levels.

Goldman Sachs Group, Inc. (GS) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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