Goldman Sachs shares slump after posting worse-than-expected revenue decline

Earnings

Goldman Sachs is scheduled to report first-quarter earnings before the opening bell Monday.

Here’s what Wall Street expects:

Earnings: $4.89 a share, down 30% from a year ago, according to Refinitiv.
Revenue: $8.9 billion, down 10% from a year earlier.
Trading Revenue: Equities $1.81 billion; Fixed income $1.77 billion, according to FactSet
Investing Banking: $1.65 billion

It’s only Goldman Sachs CEO David Solomon’s second quarter running the bank, but analysts will have plenty of questions for him.

The investment bank, which historically counted governments, corporations and hedge funds as clients, took a notable step in its journey into consumer finance last month when its joint credit card with Apple was announced. Analysts will want to know what the economics of the deal mean for the New York bank.

Still, of the six biggest U.S. banks, Goldman is the most dependent on Wall Street activities, and that means analysts will want to know how the firm’s trading operations fared in the quarter. J.P. Morgan Chase said last week that first-quarter trading revenue dropped 17 percent to $5.5 billion.

Solomon or his CFO Stephen Scherr might also provide updates on a strategic review announced in October and progress on the bank’s $5 billion revenue-boosting plan, according to analyst Jason Goldberg of Barclays.

Another topic of discussion may be the bank’s 1MDB scandal. Goldman’s shares were battered last year in part because of the ordeal, in which an ex-Goldman partner admitted to helping a Malaysian financier loot an investment fund of billions of dollars.

The shares have partially recovered this year, climbing more than 20 percent.

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