Goldman Sachs set to release Q1 figures

So far the figures from US banks in this reporting season have been mixed, and expectations for Goldman Sachs are lower than the previous quarter. 

Shares in Goldman Sachs are down by over 12% in 2014, as the outlook for revenue and profits has fallen away.

One of the bigger issues currently being faced by the US investment bank is the possibility it will have to shut down its Sigma X trading platform. Questions have been increasing over the last quarter about the way that ‘black box’ automated trading programs work alongside high frequency trading, and the implications this may have for ordinary investors. The Sigma X platform is a venue for trading private stock positions; an in-house product not available to the broader market. The final decision has not yet been reached, but it would certainly be a loss for the US bank’s annual returns should this be shut down.

One area where the firm could expect to benefit is the increasing IPO market as more companies come to the market to gain a quote. As one of the city’s largest corporate advisors, Goldman Sachs will have benefited from this upturn in fee generation.

First-quarter earnings are expected at $3.48, down year-on-year from $4.29. Revenue is also anticipated to have fallen by almost 25%. Unlike years previously, the bar has been set relatively low for these quarterly figures, and the share price is back down to lows last seen in July 2013. Although not oversold, the stock is not far off it and could be due a correction after a particularly weak first quarter.

Goldman Sachs chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.