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Here comes Goldman Sachs...

Jan 20, 2016, 17:46 IST

Goldman Sachs

Goldman Sachs is expected to report fourth-quarter earnings at 7:35 a.m. on Wednesday.

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Analysts are expecting adjusted earnings per share of $3.62 on revenue of $7.11 billion, according to Bloomberg.

Total trading revenue is expected to be $2.87 billion, according to a Bloomberg survey of analysts, with equities revenue of $1.68 billion and fixed income, currencies, and commodities revenue of $1.19 billion.

Investment banking revenue, meanwhile, is expected to come in at $1.42 billion.

Analysts had been expecting Goldman to report net income of $1.63 billion, but on Thursday the firm announced it will pay a $5 billion settlement related to residential mortgage-backed securities it sold between 2005 and 2007.

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The settlement is expected to set Q4 earnings back by $1.5 billion - essentially wiping them out.

In the same quarter last year, Goldman beat expectations, reporting adjusted earnings per share of $4.38 ($4.32 expected) on revenue of $7.69 billion ($7.64 billion expected).

The bank missed in the third quarter, adjusted earnings per share of $2.64 ($3.00 expected) on revenue of $6.86 billion ($7.12 billion expected).

"We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth," CEO Lloyd Blankfein said in a statement at the time.

JPMorgan, Citigroup, Wells Fargo, Bank of America, and Morgan Stanley have already reported Q4 earnings, and all of them beat expectations.

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