Goldman Sachs posts its worst earnings miss in a decade

https://www.cnbc.com/2023/01/17/goldman-sachs-fou…

Goldman Sachs on Tuesday posted its largest earnings miss in a decade as revenue fell and expenses and loan loss provisions came in higher than expected.

Here’s what the investment bank reported:

Earnings: $3.32 per share vs. $5.48 estimate of analysts surveyed by Refinitiv
Revenue: $10.59 billion vs. $10.83 billion

Goldman said quarterly profit plunged 66% from a year earlier to $1.33 billion, or $3.32 per share, about 39% below the consensus estimate. That made for the largest EPS miss since October 2011, according to Refinitiv data.

Revenue held up better, at $10.59 billion, down 16% from a year earlier and just below the estimate.

Shares of New York-based Goldman fell more than 6% in early trading.

“Widely expected to be awful, Goldman Sachs’ Q4 results were even more miserable than anticipated,” Octavio Marenzi, CEO of Wall Street consultancy Opimas, said in an email. “Revenues were largely in line with forecasts, but earnings took a big hit. The real problem lies in the fact that operating expenses shot up 11%, while revenues tumbled.”

More cost-cutting and layoffs at Goldman could be ahead because of that, Marenzi said.

I immediately thought of this previous thread while reading the CNBC article: https://www.wallstreetoasis.com/forum/investment-…

Serious question… is Goldman Sachs still considered a bulge bracket?

Obviously firms have to lay some people off, but I'm not even sure that Deutsche Bank has seen things this bad. Also, they have this weird bald guy running the firm who's a DJ and more focused on being "cool" to teenagers at Coachella and Lollapalooza than running a bank.

Heard the consumer business is losing $2bn per year - that sounds like a smart decision, right? Definitely need to pay Mr. DJ $30mm per year to burn cash. 

What if the firm axe'd Mr. DJ instead of revenue supporting headcount? Mr. DJ looks like a big cost center and cost producer if you ask me.

I obviously think that Goldman is still a BB, you don't lose that status over a few bad quarters. But I ultimately agree with that GS employee, David Solomon must be let go. The talent pool at GS at the exec level is very deep, there are many other and way more qualified people to run the firm.