---
title: "Dow 30 Earnings: Goldman Sachs Fourth Quarter 2018"
description: dow 30, Goldman Sachs, reported mixed financial results for the fourth quarter of 2018. Revenues of $12.557 billion were higher than the $10.672 billion result in the fourth quarter of 2017. The growth was led by a 56% increase in the financial advisory business.
image: https://investor.valueline.com/hubfs/VL%20Blog%20Images/iStock-637004020.jpg
---

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# Dow 30 Earnings: Goldman Sachs Fourth Quarter 2018

 January 16, 2019

Global investment banking leader **Goldman Sachs** ([GS ](https://research.valueline.com/research?&_ga=2.175838250.985585229.1547652631-1382868670.1547652631#sec=company&sym=GS)– [Free Goldman Sachs Stock Report](https://research.valueline.com/api/report?documentID=2185-VL_20190111_VLIS_GS_1282_01-4DKA2P3GAEJ031SLS602SCTANG&symbol=GS&_ga=2.175838250.985585229.1547652631-1382868670.1547652631)) reported mixed financial results for the fourth quarter of 2018. The company's revenue and share net figures came in slightly below our expectations, but both marked improvements over the previous-year period.

Revenues of $12.557 billion were higher than the $10.672 billion result in the fourth quarter of 2017. The growth was led by a 56% increase in the financial advisory business, mostly due to a sharp rise in completed mergers and acquisitions volumes. This offset a steep drop in revenue from underwriting, which declined 38%, owing to significantly weaker activity in both debt and equity underwriting, as capital market volatility during the quarter led many companies to defer offerings.

On the earnings front, Goldman delivered a share profit of $6.04 in the period, which beat the prior-year figure of $5.64. In addition to higher revenues, the company benefited from the reduction in the U.S. corporate tax rate. Goldman's effective tax rate for the full year was just 16.2%, which is considerably lower than the average over the previous decade.

The company appears set for continued revenue and earnings growth in 2019. For the full year, we are looking for revenues of about $54 billion, and share net of around $27.00. The stock rose roughly 5% in value following the latest financial release.

**About The Company: **[The Goldman Sachs Group](http://www.valueline.com/Stocks/Highlight.aspx?id=15044) is a global investment banking and securities firm. It operates in four business segments: Investment Banking (21% of 2018 revenues); Institutional Client Services (37%); Investing & Lending (23%); and Investment Management (19%).

- Adam James Platt

*At the time of this article’s writing, the author did not have positions in any of the companies mentioned.*

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