JP Morgan analyst Kian Abouhossein presented their take on The Goldman Sachs Group, Inc. (NYSE: GS) second-quarter FY24 earnings results reported today.
The bank reported revenue of $12.730 billion, beating the consensus of $12.456 billion, and GAAP EPS of $8.62, beating the consensus of $8.35.
The analyst stated that Goldman Sachs' reported EPS of $8.62 is 5% above their estimate of $8.24. The bank's $3.5 billion share buyback during the quarter significantly exceeded JPMorgan's $1 billion, the analyst noted.
Abouhossein added that despite the buyback occurring before the Fed Stress Test results, which raised the SCB by 90bps to 6.4% and set a 13.9% Standardized CET1 ratio requirement from October 2024, strong earnings generation offers confidence in future capital returns.
However, uncertainty remains regarding the finalization of Basel 3 regulations, noted the analyst.
Abouhossein anticipates low-single-digit EPS upgrades to consensus for 2024. The analyst has rated the stock Overweight.
Investors can gain exposure to the stock via IShares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE: IAI) and Invesco KBW Bank ETF (NYSE: KBWB).
Price Action: GS shares are up 1.22% at $485.73 at the last check Monday.