Goldman Sachs Stocks Consistently Outperform Earnings Estimates

A quick examination of the past earnings performance of Goldman Sachs, reveals that its earnings have consistently exceeded expectations over the last three (3) earnings periods. This outperformance has also been consistently high, reaching over the 20% mark in all cases.

During the most recent quarter, earnings performance exceeded analyst expectations by as much as 26.4%. While it was projected that earnings per share (EPS) would be about $3.86, it ended up that the EPS reached $4.88 per share; that is $1.02 above expectations. Also, during the quarter before the last, analysts had estimated the EPS to reach about $3.01. However, consistent with the streak of outperformance, EPS ended up at $3.72 per share. These figures are encouraging for investors who are looking for a company that produces consistently great earnings. However, it must be noted that this outperformance has only applied to short-term projections. Long-term performance has been more consistent with analyst projections.

Goldman Sachs stocks have received a “buy” recommendation from analysts. The stock closed trading on Monday at a price of $209.99 per share, up from the previous close of $209.70 per share. Prices have swung quite widely during the last 52 weeks, ranging between $138.20 and $213.41 per share. This demonstrates the volatility of the stock but also the great earning potential available. The current PE ratio stands at 17.03 with an annual EPS of $12.46. The next earnings date is scheduled for January 18, 2017. Dividends for the last year stood at $2.60 per share, with a dividend yield of 1.23%. Revenues of $33.82 billion for 2015 fell slightly below 2014 revenues of $34.53 billion. Earnings of $6.08 billion for 2015 also fell below 2014 earnings of $8.48 billion. Nevertheless, there is great promise in Goldman Sachs’ stocks.