Goldman Sachs Q3 profit tops estimates on investment banking strength
Overview
Investment bank's Q3 revenue and EPS beat analyst expectations
Net income for Q3 rose to $5.29 bln
Q3 revenue growth driven by higher Global Banking & Markets net revenues
Outlook
Goldman Sachs did not provide specific guidance for future quarters or full-year results in the release
Result Drivers
GLOBAL BANKING & MARKETS - Significantly higher net revenues in Global Banking & Markets, especially in equities and investment banking, drove overall revenue growth
EQUITIES REVENUE SURGE - Equities net revenues rose 72% year-over-year, driven by higher revenues in equities financing and intermediation
ASSET & WEALTH MANAGEMENT - Higher management and other fees, along with increased incentive fees, contributed to revenue growth in Asset & Wealth Management
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $18.68 bln | $16.71 bln (15 Analysts) |
Q3 EPS | Beat | $17.01 | $13.02 (19 Analysts) |
Q3 Net Income | $5.29 bln | ||
Q3 ROE | 18.70% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the investment banking & brokerage services peer group is "buy."
Wall Street's median 12-month price target for The Goldman Sachs Group, Inc. is $1,130.00, about 26.4% above its October 12 closing price of $893.95
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago
Reuters Recommended Reads
Oct 13 - JPMorgan hit by slowdown in investment banking momentum, shares slip
Oct 13 - Wells Fargo profit rises on robust loan growth, interest income
Oct 13 - JPMorgan's Q3 adjusted EPS, revenue miss estimates
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)