Can Goldman Sachs Match JPMorgan Chase Q4 Results?

Goldman Sachs will report its fourth quarter financial results on Wednesday January 15 before U.S. markets open, and expectations are for a modest increase in revenues versus last year, but a drop in profits. Analysts are currently bullish that Goldman Sachs can beat these expectations, especially given the excellent results posted by rivals JP Morgan Chase and Citigroup on Tuesday.

For the fourth quarter analysts expect Goldman Sachs to report earnings of $5.18 a share on revenues of $8.55 billion. That’s a 5.9% increase in revenues versus the same quarter last year, but a 14.2% drop in profits. It’s also considerably better than the third quarter results, in which Goldman missed profit expectations, disappointing investors.

Ahead of the fourth quarter results analysts have been quite active in upgrading the stock, indicating there’s a positive feeling that Goldman will do better than the Street expects this quarter and avoid a repeat of the disappointing third quarter results.

Falling interest rates in the U.S. are likely to reduce interest income for the bank, but that’s seen to be offset by rising trading revenues, both from the equity and bond trading desks.

Shares of Goldman Sachs are trading at a 52 week high, with the stock rallying leading up to the fourth quarter earnings results. It seems obvious that investors are already betting Goldman can beat the numbers Wall Street expects it to post as they’ve sent the stock 7% higher already in 2020.

Investors will also be treated to the first ever investor conference following earnings as Goldman attempts to improve transparency.