A month has gone by since the last earnings report for Goldman Sachs (GS). Shares have added about 5.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Goldman due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Goldman Q4 Earnings & Revenues Beat as IB Business Rebounds

The Goldman Sachs Group, Inc.’s fourth-quarter 2024  adjusted earnings per share of $11.95 surpassed the Zacks Consensus Estimate of $7.99. This compares favorably with $5.48 reported in the year-ago quarter.

For 2024, adjusted earnings per share were $40.54 compared with $22.87 recorded in 2023.

As expected, the IB business witnessed a solid growth. Equity underwriting fees jumped 98% and debt underwriting fees grew 50.6%. However, advisory fees fell 4.4%. Overall, total IB fees were up 24% from the prior-year quarter to $2.27 billion.

Goldman’s results benefited from a strong performance in its IB business and a solid Asset & Wealth Management division. A decline in expenses was another positive. However, a rise in provisions remains a near-term concern.

Net earnings (GAAP basis) of $4.1 billion increased 37.5% from the prior-year quarter.

For 2024, the company reported net earnings of $14.3 billion, which surged 67.6% year over year.

Goldman’s Revenues Increase and Expenses Fall

Net revenues for the quarter of $13.9 billion increased 22.5% from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate of $11.63 billion.

Net revenues of $53.5 billion for 2024 increased 15.7% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $51.97 billion.

Total operating expenses decreased 2.7% year over year to $8.26 billion. The decline was due to a fall in depreciation and amortization costs, along with occupancy and other expenses.

Provision for credit losses was $351 million, down 32% from the prior-year quarter.

Goldman’s Quarterly Segmental Performance Improves

The Asset & Wealth Management division generated revenues of $4.72 billion in the reported quarter, up 7.6% year over year. The improvement was driven by higher management and incentive fees and increased net revenues in private banking and lending, partially offset by lower net revenues in debt and equity investments.Firmwide assets under supervision were a record $3.1 trillion, up 11.6% from the prior-year quarter.

The Global Banking & Markets division has recorded revenues of $8.5 billion, which increased 33.4% year over year. The improvement was driven by an increase in the IB business, along with a rise in equities revenues and Fixed Income, Currency and Commodities Client Execution financing revenues.

The Platform Solutions division’s revenues were $669 million, up 15.9% year over year. The rise was driven by an increase in revenues from consumer platforms.

Goldman’s Capital Ratios Improve

As of Dec. 31, 2024, the standardized Common Equity Tier 1 capital ratio was 15%, up from 14.4% as of Dec. 31, 2023. The company’s supplementary leverage ratio was 5.5%, which remained unchanged year over year.

Goldman’s Capital Distribution Update

During the reported quarter, Goldman returned $2.97 billion of capital to common shareholders. This included $2 billion in share repurchases and common stock dividends of $978 million.

2025 Outlook

The company expects the tax rate to be around 20%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

Currently, Goldman has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Goldman has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

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