Goldman Sachs Group Inc Beats EPS Estimates, Misses Revenue

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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’ 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.

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