Saturday May 4, 2024
Finances
Goldman Sachs Posts Results
Goldman Sachs (GS) released its fourth quarter and full-year earnings on Tuesday, January 16. The company topped analysts’ expectations, causing the investment firm’s shares to climb approximately 2% after the release of the report.
Revenue came in at $11.32 billion during the fourth quarter, up 7% from revenue of $10.59 billion at this time last year. The results exceeded analysts’ expectations of $10.8 billion for the quarter. Full-year revenue returned at $46.25 billion, a 2% decrease from $47.37 billion in fiscal 2022.
“This was a year of execution for Goldman Sachs,” said Goldman Sachs CEO, David Solomon. “With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024. Our strategic objectives underscore our relentless commitment to serve our clients with excellence, further strengthen our leading client franchise and continue to deliver for shareholders.”
The company reported net income of $2.01 billion for the quarter. This is up 51% from $1.33 billion in the same quarter last year. For the full year, the company reported net earnings of $8.52 billion or $22.87 per diluted share. This was down from net income of $11.26 billion or $30.06 per diluted share in fiscal 2022.
Goldman Sachs’s Asset and Wealth Management segment generated revenue of $4.39 billion during the quarter, a 23% improvement over the same quarter last year. The increase was driven by gains in equity investments, debt investments and higher management fees but was partially offset by lower revenues in private banking and lending. The company’s Global Banking and Markets segment revenue fell 3% to $6.35 billion driven, in part, by a decline in completed mergers and acquisitions. Goldman Sach’s saw a 10% increase during the year of assets under supervision to reach a record high of $2.81 trillion.
Goldman Sachs (GS) shares ended the week at $382.20, up 1% for the week.
H.B. Fuller (FUL) announced its fourth quarter and full-year earnings on Wednesday, January 17. The manufacturer of industrial adhesives and other specialty chemical products reported decreased sales and revenue, causing its shares to drop by 1.3% after the release of the report.
The company’s net revenue for the fourth quarter totaled $902.9 million. This was down 6% from revenue of $958.2 million during the same quarter last year and missed analysts’ estimates of $927.0 million. Full-year revenue returned at $3.5 billion, a 6% decrease from $3.8 billion in fiscal 2022.
"As the market leader in innovation, focused on providing highly customized solutions for our customers, we have successfully transformed our portfolio into one that is concentrated in the highly specified areas of our market segments,” said H.B. Fuller CEO, Celeste Mastin. “We are successfully executing our strategy to deploy capital to the highest return opportunities, innovating with speed to deliver solutions for our customers, driving efficiencies throughout our manufacturing footprint, and achieving meaningful synergies from our collections of acquisitions.”
H.B. Fuller reported net income of $45.0 million or $0.80 per diluted share for the quarter. This is a 7% decrease in earnings during the same quarter last year of $48.3 million or $0.87 per diluted share. For the full year, the company reported net income of $144.9 million or $2.59 per diluted share. This was down from net income of $180.3 million or $3.26 per diluted share in fiscal 2022.
The Minnesota-based company reported a decrease in sales across several segments driven by significant customer destocking. The Hygiene, Health and Consumable Adhesives segment net sales decreased by 7%, falling to $411.1 million for the quarter. The Engineering Adhesives segment reported a decrease in sales of 7% in the fourth quarter to $365.7 million. Sales in the Construction Adhesives segment rose by 5% to $126.1 million. H.B. Fuller Company issued its full year 2024 guidance and expects net revenue to increase 2% to 6% and earnings per diluted share of $4.14 to $4.45.
H.B. Fuller Company (FUL) shares ended the week at $76.75, down 1% for the week.
Discover Financial Services (DFS), a digital banking and loan company, released its fourth quarter and full-year earnings on Wednesday, January 17. Despite reporting increased revenue, the company’s shares fell nearly 11% after the earnings release.
The company reported revenue of $4.20 billion for the quarter, up 13% from $3.72 billion reported during the same quarter last year and above analysts’ expectations of $4.1 billion. Full-year revenue returned at $15.86 billion, a 19% increase from $13.29 billion in fiscal 2023.
"Discover’s performance in 2023 was driven by strong asset and deposit growth and a resilient net interest margin, while net charge-offs increased but to the low end of our expected range,” said Discover’s Interim CEO, John Owen. “Additionally, we have taken steps to strengthen our risk management and compliance programs; launched an important new product, Cashback Debit; and announced our new CEO. These factors position Discover to generate strong shareholder value in 2024 and beyond.”
Discover Financial Services posted net income of $388 million for the quarter or $1.54 per adjusted share. This was a decrease from net income of $1.03 billion or $3.74 per adjusted share one year ago. For the full year, the company reported net income of $2.86 billion or $11.26 per adjusted share. This was down from net income of $4.29 billion or $15.44 per adjusted share in fiscal 2022.
The company’s Digital Banking segment saw a decrease in fourth quarter income of 65% to $458 million due to higher credit losses and operating expenses. The Payment Services segment returned income of $54 million, an increase from $37 million from the same time last year. Discover ended the quarter with total loans of $128.41 billion, up 15% year-over-year. The company’s board of directors declared a quarterly cash dividend of $0.70 per common share payable on March 7, 2024, to shareholders of record on February 22, 2024.
Discover Financial Services (DFS) shares ended the week at $97.33, down 10% for the week.
The Dow started the week at 37,494 and closed at 37,864 on 1/19. The S&P 500 started the week at 4,772 and closed at 4,840. The NASDAQ started the week at 14,908 and closed at 15,311.
Revenue came in at $11.32 billion during the fourth quarter, up 7% from revenue of $10.59 billion at this time last year. The results exceeded analysts’ expectations of $10.8 billion for the quarter. Full-year revenue returned at $46.25 billion, a 2% decrease from $47.37 billion in fiscal 2022.
“This was a year of execution for Goldman Sachs,” said Goldman Sachs CEO, David Solomon. “With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024. Our strategic objectives underscore our relentless commitment to serve our clients with excellence, further strengthen our leading client franchise and continue to deliver for shareholders.”
The company reported net income of $2.01 billion for the quarter. This is up 51% from $1.33 billion in the same quarter last year. For the full year, the company reported net earnings of $8.52 billion or $22.87 per diluted share. This was down from net income of $11.26 billion or $30.06 per diluted share in fiscal 2022.
Goldman Sachs’s Asset and Wealth Management segment generated revenue of $4.39 billion during the quarter, a 23% improvement over the same quarter last year. The increase was driven by gains in equity investments, debt investments and higher management fees but was partially offset by lower revenues in private banking and lending. The company’s Global Banking and Markets segment revenue fell 3% to $6.35 billion driven, in part, by a decline in completed mergers and acquisitions. Goldman Sach’s saw a 10% increase during the year of assets under supervision to reach a record high of $2.81 trillion.
Goldman Sachs (GS) shares ended the week at $382.20, up 1% for the week.
H.B. Fuller Announces Earnings Report
H.B. Fuller (FUL) announced its fourth quarter and full-year earnings on Wednesday, January 17. The manufacturer of industrial adhesives and other specialty chemical products reported decreased sales and revenue, causing its shares to drop by 1.3% after the release of the report.
The company’s net revenue for the fourth quarter totaled $902.9 million. This was down 6% from revenue of $958.2 million during the same quarter last year and missed analysts’ estimates of $927.0 million. Full-year revenue returned at $3.5 billion, a 6% decrease from $3.8 billion in fiscal 2022.
"As the market leader in innovation, focused on providing highly customized solutions for our customers, we have successfully transformed our portfolio into one that is concentrated in the highly specified areas of our market segments,” said H.B. Fuller CEO, Celeste Mastin. “We are successfully executing our strategy to deploy capital to the highest return opportunities, innovating with speed to deliver solutions for our customers, driving efficiencies throughout our manufacturing footprint, and achieving meaningful synergies from our collections of acquisitions.”
H.B. Fuller reported net income of $45.0 million or $0.80 per diluted share for the quarter. This is a 7% decrease in earnings during the same quarter last year of $48.3 million or $0.87 per diluted share. For the full year, the company reported net income of $144.9 million or $2.59 per diluted share. This was down from net income of $180.3 million or $3.26 per diluted share in fiscal 2022.
The Minnesota-based company reported a decrease in sales across several segments driven by significant customer destocking. The Hygiene, Health and Consumable Adhesives segment net sales decreased by 7%, falling to $411.1 million for the quarter. The Engineering Adhesives segment reported a decrease in sales of 7% in the fourth quarter to $365.7 million. Sales in the Construction Adhesives segment rose by 5% to $126.1 million. H.B. Fuller Company issued its full year 2024 guidance and expects net revenue to increase 2% to 6% and earnings per diluted share of $4.14 to $4.45.
H.B. Fuller Company (FUL) shares ended the week at $76.75, down 1% for the week.
Discover Financial Services Releases Earnings
Discover Financial Services (DFS), a digital banking and loan company, released its fourth quarter and full-year earnings on Wednesday, January 17. Despite reporting increased revenue, the company’s shares fell nearly 11% after the earnings release.
The company reported revenue of $4.20 billion for the quarter, up 13% from $3.72 billion reported during the same quarter last year and above analysts’ expectations of $4.1 billion. Full-year revenue returned at $15.86 billion, a 19% increase from $13.29 billion in fiscal 2023.
"Discover’s performance in 2023 was driven by strong asset and deposit growth and a resilient net interest margin, while net charge-offs increased but to the low end of our expected range,” said Discover’s Interim CEO, John Owen. “Additionally, we have taken steps to strengthen our risk management and compliance programs; launched an important new product, Cashback Debit; and announced our new CEO. These factors position Discover to generate strong shareholder value in 2024 and beyond.”
Discover Financial Services posted net income of $388 million for the quarter or $1.54 per adjusted share. This was a decrease from net income of $1.03 billion or $3.74 per adjusted share one year ago. For the full year, the company reported net income of $2.86 billion or $11.26 per adjusted share. This was down from net income of $4.29 billion or $15.44 per adjusted share in fiscal 2022.
The company’s Digital Banking segment saw a decrease in fourth quarter income of 65% to $458 million due to higher credit losses and operating expenses. The Payment Services segment returned income of $54 million, an increase from $37 million from the same time last year. Discover ended the quarter with total loans of $128.41 billion, up 15% year-over-year. The company’s board of directors declared a quarterly cash dividend of $0.70 per common share payable on March 7, 2024, to shareholders of record on February 22, 2024.
Discover Financial Services (DFS) shares ended the week at $97.33, down 10% for the week.
The Dow started the week at 37,494 and closed at 37,864 on 1/19. The S&P 500 started the week at 4,772 and closed at 4,840. The NASDAQ started the week at 14,908 and closed at 15,311.
Treasury Yields Surge
U.S. Treasury yields rose early in the week as investors assessed the latest data on consumer spending. Yields continued to move higher at the end of the week as the latest jobs report gave further indication that interest rate cuts by the Federal Reserve may take longer than anticipated.
On Wednesday, the Commerce Department reported that retail sales for December rose 0.6%, without adjusting for inflation. This exceeded Wall Street’s projections of a 0.4% increase. Sales, excluding automobiles, showed an increase of 0.4%, also surpassing analysts' expectations of a 0.2% increase.
“Households have continued to weather high interest rates and October's resumption of student loan payments,” said Macro Strategist at FHN Financial, Will Compernolle. “While there are some signs of rising distress in credit card delinquencies, we see no strong evidence so far that the economy started 2024 on the verge of a downturn.”
The benchmark 10-year Treasury note yield opened the week of January 16 at 3.94% and traded as high as 4.16% on Thursday. The 30-year Treasury bond opened the week at 4.18% and traded as high as 4.39% on Thursday.
On Thursday, the U.S. Department of Labor reported that initial claims for unemployment decreased by 16,000 to 187,000 for the week ended January 13. This was below analysts’ expectations of 208,000 claims for the week and the lowest level of initial claims since September 2022. Continuing unemployment claims dropped by 26,000, reaching 1.81 million.
“Employers may be adding fewer workers monthly, but they are holding onto the ones they have and paying higher wages given the competitive labor market,” said corporate economist at Navy Federal Credit Union, Robert Frick.
The 10-year Treasury note yield finished the week of 1/19 at 4.13%, while the 30-year Treasury note yield finished the week at 4.33%.
On Wednesday, the Commerce Department reported that retail sales for December rose 0.6%, without adjusting for inflation. This exceeded Wall Street’s projections of a 0.4% increase. Sales, excluding automobiles, showed an increase of 0.4%, also surpassing analysts' expectations of a 0.2% increase.
“Households have continued to weather high interest rates and October's resumption of student loan payments,” said Macro Strategist at FHN Financial, Will Compernolle. “While there are some signs of rising distress in credit card delinquencies, we see no strong evidence so far that the economy started 2024 on the verge of a downturn.”
The benchmark 10-year Treasury note yield opened the week of January 16 at 3.94% and traded as high as 4.16% on Thursday. The 30-year Treasury bond opened the week at 4.18% and traded as high as 4.39% on Thursday.
On Thursday, the U.S. Department of Labor reported that initial claims for unemployment decreased by 16,000 to 187,000 for the week ended January 13. This was below analysts’ expectations of 208,000 claims for the week and the lowest level of initial claims since September 2022. Continuing unemployment claims dropped by 26,000, reaching 1.81 million.
“Employers may be adding fewer workers monthly, but they are holding onto the ones they have and paying higher wages given the competitive labor market,” said corporate economist at Navy Federal Credit Union, Robert Frick.
The 10-year Treasury note yield finished the week of 1/19 at 4.13%, while the 30-year Treasury note yield finished the week at 4.33%.
Mortgage Rates Decline
Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, January 18. The survey showed the 30-year fixed rate decreased to its lowest level since May 2023.
This week, the 30-year fixed rate mortgage averaged 6.60%, down from last week’s average of 6.66%. Last year at this time, the 30-year fixed rate mortgage averaged 6.15%.
The 15-year fixed rate mortgage averaged 5.76% this week, down from last week’s 5.87%. During the same week last year, the 15-year fixed rate mortgage averaged 5.28%.
“Mortgage rates decreased this week, reaching their lowest level since May of 2023,” said Freddie Mac’s Chief Economist, Sam Khater. “This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability. However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale.”
Based on published national averages, the savings rate was 0.47% as of 1/16. The one-year CD averaged 1.86%.
Editor’s Note: The publicly available financial information is offered as a helpful and informative service to our friends. This article is not an endorsement of any company, product or service.
This week, the 30-year fixed rate mortgage averaged 6.60%, down from last week’s average of 6.66%. Last year at this time, the 30-year fixed rate mortgage averaged 6.15%.
The 15-year fixed rate mortgage averaged 5.76% this week, down from last week’s 5.87%. During the same week last year, the 15-year fixed rate mortgage averaged 5.28%.
“Mortgage rates decreased this week, reaching their lowest level since May of 2023,” said Freddie Mac’s Chief Economist, Sam Khater. “This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability. However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale.”
Based on published national averages, the savings rate was 0.47% as of 1/16. The one-year CD averaged 1.86%.
Editor’s Note: The publicly available financial information is offered as a helpful and informative service to our friends. This article is not an endorsement of any company, product or service.
Published January 19, 2024
