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Goldman Sachs Group Inc Beats EPS Estimates, Misses Revenue

Goldman Sachs released the earnings results from its fourth fiscal quarter and full 2014 fiscal year before opening bell this morning. Earnings per share were $4.38 on revenue of $7.69 billion. Analysts had been expecting earnings of $4.32 per share on $7.71 billion in revenue for the quarter. In the same quarter a year ago, Goldman Sachs posted earnings of $4.60 per share on $8.78 billion in revenue.

Goldman Sachs Group Inc Beats EPS Estimates, Misses Revenue

Goldman Sachs’ earnings by segment

Diluted earnings per share for the full year were $17.07, compared to last year’s $15.46 per share. Goldman Sachs reported a return on equity of 11.2% for the full year. Annualized return on equity was 11.1% for the quarter. Book value per share rose 7% to $163.01, while tangible book value per share also rose 7%, hitting $153.79.

Investment banking revenue fell 16% to $1.44 billion for the fourth quarter, coming up short of the consensus estimate of $1.5 billion. For the full year, Goldman Sachs reported $6.46 billion in investment banking revenues.

The firm posted a record net revenue of $6.04 billion for the full year in its investment management division. Assets under supervision rose 13% year over year, hitting a new record of $1.18 trillion. Net inflows in long term assets under supervision were $74 billion during the year.

Goldman Sachs’ institutional client services saw net revenues of $15.2 billion for the full year, a decline from 2013. For the fourth quarter, the segment recorded net revenues of $3.15 billion, also a year over year decline.

The firm’s investing and lending segment saw $6.83 billion in net revenues for the full year, a 3% year over year decline, and $1.53 billion in net revenues for the fourth quarter, a 26% decline year over year.

Goldman Sachs sees continued strong capital ratios, liquidity

Goldman Sachs returned about $6.5 billion to shareholders during the year. The firm’s Common Equity Tier 1 ratio was 12.2% as of the end of December under the Basel III Advanced approach. Global core excess liquidity was $183 billion.

Shares of Goldman Sachs Group slipped by as much as 1.75% in premarket trading after this morning’s earnings report.