The Goldman Sachs Group, Inc. (GS) drops its fourth-quarter earnings report Thursday morning before the market opens, and Wall Street is watching closely after an impressive winning streak.
The consensus forecast calls for earnings of $11.67 per share, which would actually represent a slight decline from the $11.95 per share Goldman posted in the same quarter last year. Revenue expectations sit at $14.12 billion, up from $13.87 billion in the year-ago period.
Here's the thing though: Goldman has been crushing estimates lately. The bank has beaten earnings per share expectations for nine straight quarters and topped revenue forecasts for 10 consecutive quarters. That's the kind of streak that tends to set a high bar for management.
Shares of Goldman Sachs closed Wednesday at $932.67, slipping 0.6% as investors positioned ahead of the print.
What the Most Accurate Analysts Are Saying
Several top-ranked Wall Street analysts have weighed in recently with updated takes on Goldman ahead of earnings. Here's the breakdown:
JP Morgan's Kian Abouhossein, who maintains a 76% accuracy rate, kept his Neutral rating on January 8 but bumped his price target from $750 to $775.
Barclays analyst Jason Goldberg stayed bullish with an Overweight rating and raised his target significantly from $850 to $1,048 on January 5. His accuracy rate stands at 62%.
Keefe, Bruyette & Woods analyst David Konrad maintained a Market Perform rating on December 17 while lifting his price target from $870 to $971. He's tracking a 79% accuracy rate.
Citigroup's Keith Horowitz, who boasts an 80% accuracy rate, held his Neutral stance on October 16 and raised his target from $700 to $765.
Morgan Stanley's Betsy Graseck maintained an Equal-Weight rating back on October 15 but actually cut her price target from $854 to $828. Her accuracy rate is 62%.
The range of price targets reflects Wall Street's mixed sentiment. While some analysts see significant upside potential given Goldman's momentum in investment banking and trading, others remain cautious about valuation at current levels. Thursday morning's results should provide clarity on whether the bank can extend its impressive streak of estimate-beating performances.