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Goldman Sachs Beats Consensus After Excluding Tax Charge, Shares Dip

Published 01/17/2018, 07:43 AM
© Reuters.  Goldman Sachs reports Q4 EPS of $5.68 vs. $4.91 forecast
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Investing.com – Shares in Goldman Sachs (NYSE:GS) turned lower in pre-market trade on Wednesday after reporting fourth quarter earnings.

The financial institution reported adjusted earnings per share (EPS) of $5.68, excluding the impact of the recent tax legislation passed by the U.S. Congress, in the three months ended December 31.

“During the fourth quarter of 2017, the firm recorded $4.40 billion of income tax expense related to Tax Legislation,” the bank noted in the press release.

Analysts’ forecast pointed to earnings of $4.91 a share.

Meanwhile, the firm’s revenue decreased 4.2% from the same quarter a year earlier to $7.83 billion, beating the forecast for $7.61 billion.

“Last year, we delivered higher revenue and stronger pre-tax margins despite a challenging environment for our market-making businesses,” CEO and chairman Lloyd Blankfein said in the release.

“With the global economy poised to accelerate, new U.S. tax legislation providing tailwinds and a leading franchise across our businesses, we are well positioned to serve our clients and make significant progress on the growth plan we outlined in September,” he added.

Traders will now turn their attention to the firm’s conference call due to start at 9:30AM ET (14:30GMT).

Following the release of the report, shares fell 0.29% at 7:49AM ET (12:49GMT) in pre-market trade to $257.52, from the previous closing price of $258.46. Goldman had been trading up around 0.6% at $260.00 prior to the publication.

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