The Clap
Goldman Sachs (NYSE:GS) recorded an EPS of $3.32, significantly less than the expected $5.48.
What
Goldman’s profit declined around 66% YoY in Q4 2022, to record $1.33bn. In addition, revenues also declined around 16% YoY to reach $10.59bn.
So What
The company’s shares tumbled more than 6% following the earnings report. The poor performance was largely due to a slowing economy and borrowers’ inability to pay on time, a sign that consumers’ creditworthiness is getting poorer.
Now What
The poor earnings could drive Goldman to cut costs and reduce its workforce in a bid to reduce operating expenses, which saw an 11% increase YoY during Q4 2022.
