NEW YORK (TheStreet) --Goldman Sachs (GS - Get Report) has reached a $1.2 billion settlement with the Federal Housing Finance Agency in order to resolve a U.S. regulator's allegation that the bank sold Freddie Mac and Fannie Mae faulty mortgage bonds, Reuters reported.
Under the terms of the agreement, Goldman has agreed to repurchase mortgage-backed securities from the two financial companies for $3.15 billion.
The $1.2 billion is the amount the company will pay, without the estimated current value of the securities being repurchased from Freddie Mac and Fannie Mae, Reuters added.
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- GS's revenue growth has slightly outpaced the industry average of 2.8%. Since the same quarter one year prior, revenues slightly increased by 2.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GOLDMAN SACHS GROUP INC has improved earnings per share by 10.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GOLDMAN SACHS GROUP INC increased its bottom line by earning $15.47 versus $14.15 in the prior year. This year, the market expects an improvement in earnings ($16.81 versus $15.47).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Capital Markets industry average. The net income increased by 5.5% when compared to the same quarter one year prior, going from $1,931.00 million to $2,037.00 million.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: GS Ratings Report