Upcoming AWS Coverage on CME Group Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 23, 2017 / Active Wall St. announces its post-earnings coverage on The Goldman Sachs Group, Inc. (NYSE: GS). The Company released its financial results for the and fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 18, 2017. The New York-based investment bank's quarterly total net revenues grew 12% y-o-y, topping analysts' consensus estimates. Register with us now for your free membership at:

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One of Goldman Sachs Group's competitors within the Investment Brokerage - National space, CME Group Inc. (NASDAQ: CME), announced on January 09, 2017, that it will release its earnings for Q4 and full-year 2016 before the markets open on Thursday, February 02, 2017. The Company has scheduled an investor conference call that day at 7:30 a.m. CT. AWS will be initiating a research report on CME Group in the coming days.

Today, AWS is promoting its earnings coverage on GS; touching on CME. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=GS

http://www.activewallst.com/registration-3/?symbol=CME

Earnings Reviewed

In Q4 FY16, Goldman Sachs's total net revenues surged to $8.17 billion from $7.27 billion in the prior year's comparable quarter, outperforming Wall Street's consensus of $7.4 billion. In the reported quarter, the Company's total noninterest income surged 19% y-o-y to $7.83 billion; however, net interest income declined 52% y-o-y to $336 million.

For Q4 FY16, the global investment bank's operating expenses came in at $2.45 billion, 19% higher than $2.04 billion reported in Q4 FY15. The Company reported net earnings applicable to common shareholders of $2.15 billion, or $5.08 per diluted share, in Q4 FY16 compared to $574 million, or $1.27 per diluted share, in Q4 FY15. Wall Street had expected the Company to report net earnings of $4.76 per diluted share in Q4 FY16.

In full year FY16, Goldman Sachs's total net revenues fell by 9% to $30.61 billion, however it beat market forecast of $29.9 billion. Meanwhile, the Company's net earnings applicable to common shareholders also rose during FY16 to $7.09 billion, or $16.29 per diluted share, from $5.57 billion, or $12.14 per diluted share, in the previous year. The Company's net earnings also outperformed market consensus estimates of $15.75 per diluted share.

Performance Metrics

For the reported period, Goldman Sachs' assets under supervision came in at $1.38 trillion compared to $1.25 trillion in the prior year's comparable quarter. The Company provided 9.4% of return on average common shareholders' equity in the reported period.

The bank's standardized Common Equity Tier (CET) 1 ratio stood at 14.5% as on December 31, 2016, compared to 13.6% as of December 31, 2015. Furthermore, Basel III Advanced CET 1 ratio was 13.1% as on December 31, 2016, compared to 12.4% as of December 31, 2015. During Q4 FY16, supplementary leverage ratio improved to 6.4% as of December 31, 2016 from 5.9% at the end of last year's comparable quarter. As of December 31, 2016, book value per common share and tangible book value per common were $182.47 and $172.60, respectively.

Segment Performance

During the quarter ended on December 31, 2016, Investment Banking division's revenues came in at $1.49 billion which was 4% below $1.55 billion reported in the year ago same quarter. During the quarter, the Financial Advisory and Equity underwriting revenues were down by 19% and 7% y-o-y, respectively. However, debt underwriting surged 28% y-o-y in the reported quarter.

In Q4 FY16, Institutional Client Services' revenues grew 25% y-o-y to $3.60 billion from $2.88 billion in Q4 FY15. The rise in revenue was due to 78% y-o-y surge in revenues from Fixed Income, Currency and Commodities Client Execution. However, there was an18% and 7% y-o-y headwinds in Equities client execution and Securities services, respectively. Furthermore, revenue contribution from Commissions and fees also fell by 4% y-o-y.

Investing & Lending division's revenue came in at $1.48 billion, which was 15% above $1.30 billion reported in the year ago corresponding quarter. Both, Equity securities and Debt securities and loans witnessed a year-over-year growth of 3% and 53%, respectively.

Additionally, Investment Management division's revenue advanced 3% y-o-y to $1.61 billion in Q4 FY16 from $1.55 billion in Q4 FY15. In the division, incentive fees and transaction revenues grew 18% and 22% on a y-o-y basis; while management and other fees was marginally down by 1% y-o-y.

Dividend and Buyback

Goldman Sachs announced on January 17, 2017, that the Company's Board of Directors had declared quarterly cash dividend of $0.65 per common share, which is payable March 30, 2017, to shareholders of record on March 02, 2017.

The Company further informed Wall Street's that it had firm repurchased 7.6 million shares of its common stock worth $1.50 billion at an average cost per share of $197.80. Furthermore, the Company had repurchased a total of 36.6 million shares of its common stock at an average cost per share of $165.88, costing $6.07 billion in full year FY16.

Stock Performance

Last Friday, the stock closed the trading session at $232.20, slightly climbing 0.34% from its previous closing price of $231.41. A total volume of 5.20 million shares have exchanged hands, which was higher than the 3-month average volume of 4.11 million shares. Goldman Sachs' stock price advanced 33.47% in the last three months, 46.10% in the past six months, and 55.50% in the previous twelve months. The Company's shares are trading at a PE ratio of 18.49 and have a dividend yield of 1.12%. The stock currently has a market cap of $92.16 billion.

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SOURCE: Active Wall Street