Summary

• Goldman Sachs reported fourth-quarter results that missed analysts' estimates for profit, due to declines in investment banking and asset management revenue.
• The bank's CEO, David Solomon, will likely face questions about the duration of the current downturn in investment banking and the company's plans for headcount and expenses following recent layoffs.
• Goldman's shares dipped 2.4% in premarket trading and analysts will also be keen to hear updates on the bank's consumer operations as it scales back its ambitions in this area.

Goldman Sachs, one of the largest investment banks in the world, announced its fourth-quarter results on Tuesday which fell short of analysts’ expectations. The bank reported earnings of $3.32 per share, missing the estimate of $5.48 per share from analysts surveyed by Refinitiv. Additionally, revenue came in at $10.59 billion, missing the estimate of $10.83 billion. The bank cited steep declines in investment banking and asset management revenue as the reason for the miss.

Shares of the New York-based bank dipped 2.4% in pre-market trading as investors react to the news. This is a significant disappointment for the bank, especially considering the fact that its peers, JPMorgan Chase and Citigroup, had posted declines in investment banking revenue of nearly 60% last week.

Analysts are now questioning the odds of a rebound in the investment banking sector later this year. They are also eager to hear Goldman CEO David Solomon's views on headcount and expenses, as the bank laid off up to 3,200 employees last week, and details about the bank's consumer operations as it scales back ambitions in that area.

Goldman Sachs shares have climbed 8.9% this year going into Tuesday's trading, compared with a 6.7% advance for the KBW Bank Index. However, the bank's recent results may affect the stock's performance in the near future.

Investors and analysts will also be closely watching the results of other banks such as Morgan Stanley, which is also scheduled to release results on Tuesday, to gain a better understanding of the current state of the investment banking industry.