Financial services firm Goldman Sachs Group Inc. (GS) is slated to announce its fourth-quarter results before the market opens Thursday. On average, analysts polled by Thomson Reuters expect a profit of $5.20 per share for the quarter on revenues of $9.71 billion. Analysts' forecast typically excludes one-time items. In the year-ago quarter, the company reported a loss of $4.97 per share.
In the preceding third quarter, Goldman's profit more than tripled, reflecting the strong performance of its Trading and Principal Investments business and notwithstanding a fall in total Investment Banking revenue. Net earnings for the quarter were $3.19 billion, higher than the $845 million reported a year ago.
The New York-based company also reported third-quarter net earnings applicable to common shareholders of $3.03 billion, compared with $810 million in the previous year. Earnings per share rose to $5.25 from $1.81 in the prior-year quarter. Quarterly net revenues, including net interest income, climbed to $12.37 billion from $6.04 billion last year.
At the time of the third-quarter results announcement, Lloyd Blankfein, chairman and chief executive officer of Goldman, stated, "Although the world continues to face serious economic challenges, we are seeing improving conditions and evidence of stabilization, even growth, across a number of sectors. Our client franchise businesses - advisory, financing, market making and asset management - contribute to and benefit from the overall improvement in conditions."
Goldman also said then that it continues to focus on actively helping its clients in order to promote greater economic activity because the job market and growth, which more generally remain under stress.
On December 10, Goldman said its board approved performance bonus in the form of "Shares at Risk" for the entire 30-person management committee. No cash bonus will be provided for 2009 to the company's management committee.
Goldman expects that the provision to recapture the bonus in its Shares at Risk program would ensure that its employees are accountable for the future impact of their decisions, while reinforcing the importance of risk controls to the firm.
The company also wants to make clear that its compensation practices do not take excessive risk as the U.S. government and its agencies are increasingly scrutinizing financial institutions' activities in light of the economic downturn and the bankruptcy of Lehman Brothers. In addition, rewarding employees in hefty amounts may draw public attention and trigger anger among investors. According to Blankfein, these measures reflect the compensation principles that Goldman articulated at its shareholders' meeting in May.
Among Goldman's rivals, JPMorgan Chase & Co. (JPM) last week reported a four-fold rise in fourth-quarter profit, reflecting strong results from its Investment Bank and Asset Management businesses. The company's fourth-quarter net income jumped to $3.28 billion or $0.74 per share from $702 million or $0.06 per share reported a year ago. Total quarterly net revenues rose 34% to $23.16 billion from $17.23 billion in the prior-year quarter.
Another peer, Morgan Stanley (MS) Wednesday reported a profit for the fourth quarter of fiscal 2009, compared to a loss last year, helped by higher revenues across all segments. Net income applicable to Morgan Stanley was $617 million, or $0.29 per share, compared to a net loss applicable to Morgan Stanley of $10.953 billion or $11.35 per share in the fourth quarter of last year. Earnings applicable to the company's common shareholders reached $376 million, versus a loss of $11.348 billion in the prior-year quarter. Morgan Stanley also reported consolidated net revenues of $6.842 billion, compared to negative revenues of $13 billion a year ago.
GS closed Wednesday's trading at $167.79, up $0.93, on a volume of 8.88 million shares. For 52-week period, the company's shares traded in a range of $63.25 - $193.60.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.