Goldman Sachs (GS) is scheduled to report second-quarter results on Wednesday morning, with traders anticipating a move that could potentially bring the stock to an all-time high.
Based on current options pricing, traders expect Goldman’s shares could end the week up to 3% or $21.25 above or below Tuesday’s close near $703. At the upper end of that range, the stock could hit a new high just above its July 3 closing record of $723.68.
Goldman shares have risen on the day of their last four earnings reports. Three of the four quarterly reports have been followed by moves of around 2%, with Goldman’s fourth-quarter report in January leading to a 6% jump.
The shares have gained nearly one-quarter of their value since the start of this year, and about 40% over the last 12 months.
Analysts Expect Rising Revenue and Earnings Per Share
Last quarter, Goldman reported better revenue and earnings per share than analysts had forecast, though the bank’s net interest income fell short of estimates.
Analysts surveyed by Visible Alpha expect Goldman to post second-quarter earnings per share of $9.74, up from $8.62 a year ago, and a roughy 7% year-over-year jump in revenue to $13.59 billion. Net interest income is projected to have climbed to $2.79 billion, up from $2.24 billion a year earlier.
The analysts are largely cautious about Goldman’s stock, with three holding “buy” or equivalent ratings, compared to five “hold” ratings, and one “sell.” Their mean price target near $720 would suggest about 2% upside from Tuesday’s close.
