Banking giant Goldman Sachs (NYSE:GS) swung up in pre-market trading after it posted better-than-expected fourth-quarter results, with earnings of $5.48 per share. This beat consensus estimates of $3.62 per share.
Goldman Sachs generated net revenues of $11.3 billion, up by 7% year-over-year and surpassing analysts’ estimates of $10.8 billion. The bank’s higher revenues were driven by its Asset and Wealth Management business, which saw revenues of $4.4 billion, an increase of 23% year-over-year.
The investment bank’s equity trading revenue jumped 26% year-over-year in the fourth quarter to $2.6 billion due to significantly higher net revenues from derivatives and prime equity financing. However, investment banking fees declined by 12% year-over-year to $1.65 billion due to a fall in mergers and acquisitions activity.
Is GS Stock a Good Buy?
Analysts remain cautiously optimistic about GS stock with a Moderate Buy consensus rating based on 12 Buys and seven Holds. Over the past year, GS stock has surged by more than 10%, and the average GS price target of $404.56 implies an upside potential of 7.1% at current levels.
