Goldman Sachs Q3 profit tops estimates on investment banking strength

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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