Bullish Financial Giant stock to watch: Goldman Sachs Group Inc (NYSE: GS)

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Goldman Sachs Group Inc (NYSE: GS) stock rose over 1.2% on 20th April, 2020 (as of 11:43 am GMT-4; Source: Google finance) even though, the bank has reported 46% decline in the quarterly profit to $1.21 billion, down from $2.25 billion a year ago. Apart from the results, the rally has been driven by Fed stimulus, with the stock rising over 31% in the last four weeks (Source: Finviz.com).

Goldman’s trading revenue grew 28% to $5.16 billion. The fixed-income traders had their best quarter in five years. The groups that help clients wager and manage volatility in asset prices posted growth, too. The revenue from mergers had fallen 11%, though that is less a reflection of the economic outlook because bankers collect their fees only when deals are completed, typically months after they are struck. The revenue from stock and bond offerings rose 29%. Goldman’s asset management arm reported losses in its debt and equity investments as both stock and bond prices plunged. The net revenues in Asset Management were of $(96) million for the first quarter of 2020, compared to $1.79 billion for the first quarter of 2019

Moreover, the net revenues in Investment Banking were $2.18 billion for the first quarter of 2020, which is an increase of 25% compared to the first quarter of 2019 and 6% higher than the fourth quarter of 2019. The company’s investment banking transaction backlog declined compared with the end of 2019, but increased compared with the end of the first quarter of 2019. Net revenues in Consumer & Wealth Management were $1.49 billion for the first quarter of 2020, which is an increase of 21% compared to the first quarter of 2019 and 6% higher than the fourth quarter of 2019.

GS in the first quarter of FY 20 has reported the adjusted earnings per share of $3.11, beating the analysts’ estimates for the adjusted earnings per share of $3.11, according to the analysts polled by FactSet. The company had reported flat adjusted revenue growth to $8.74 billion in the first quarter of FY 20, beating the analysts’ estimates for revenue of $8.3 billion. The revenue was 12% lower than the fourth quarter of 2019. Net revenues, compared with the first quarter of 2019, have reported significantly lower net revenues in Asset Management, mainly offset by significantly higher net revenues in Global Markets, Investment Banking and Consumer & Wealth Management.

Additionally, GS has declared a dividend of $1.25 per common share to be paid on June 29, 2020 to common shareholders of record on June 1, 2020.

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