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

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.)