Goldman Sachs surge Monday after trouncing forecasts for its Q1 earnings report. GS shares led the Dow Jones Industrial Average on the day. JPMorgan, Wells Fargo and BlackRock kicked off financial earnings last week with mixed stock reactions.
Goldman Sachs reported a 32% increase in earnings to $11.58 per share. Net revenue jumped 16.3% to $14.21 billion, primarily driven by gains in investment banking. The results marked two consecutive quarters of double-digit earnings gains, although revenue growth decelerated over the last four quarters.
FactSet analysts expected first-quarter earnings to decline 0.7% to $8.73 per share on 5.9% revenue growth to $12.94 billion.
Investment banking revenues increased 32% year-over-year to $2.09 billion. Net interest income declined 10% to $1.6 billion.
The bank's global banking and markets revenue rose 15% to $9.73 billion. Asset and wealth management revenue jumped 18% to $3.79 billion.
Goldman Sachs allocated $318 million in provisions for credit losses during the quarter, compared to a benefit of $171 million for the same period last year. Provisions for credit losses were $577 million in Q4.
Goldman Sachs Stock
GS stock popped almost 6% in early trade Monday, then pared its advance to 2.9%.
The gain lifted shares back above the stock's 50-day line and just below its 21-day exponential moving average, marking Goldman's first gain after three consecutive daily declines.
Goldman Sachs hit a two-year high of 419.20 on March 28. Monday's gain narrowed to 6% the gap from GS stock's record high of 426.16 from Nov. 2021.
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