Back to top

Image: Bigstock

Goldman Sachs (GS) Beats Q3 Earnings & Revenue Estimates

Read MoreHide Full Article

Have you been eager to see how The Goldman Sachs Group, Inc. (GS - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this NY-based popular bank’s earnings release this morning:

An Earnings Beat

Goldman came out with earnings per share of $5.02, significantly beating the Zacks Consensus Estimate of $4.31. Higher net revenues were primarily responsible for the beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Goldman depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged over the last seven days.

Also, Goldman has a decent earnings surprise history. Before posting earnings beat in Q3, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 11.61% in the trailing four quarters.

Revenue Came in Higher Than Expected   
 
Goldman posted revenues of $8.3 billion, outpacing the Zacks Consensus Estimate of $7.6 billion. Moreover, it compared favorably with the year-ago number of $8.2 billion.

Key Stats to Note:

  • Goldman ranked  first  in  worldwide  announced  and completed mergers  and acquisitions year-to-date and recorded highest quarterly results in three years in investing and lending
  • Goldman repurchased 9.6 million shares of its common stock for a total cost of $2.17 billion during the quarter
  • Annualized return on average common shareholders’ equity (ROE) was recorded at 10.9%
  • Fixed Income, Currency and Commodities Client Execution (FICC) revenues declined 26% year over year

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Goldman. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

How the Market Reacted So Far

Following the earnings release, Goldman shares were up more than 1% in the pre-trading session. This is in line to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.

Check back later for our full write up on this Goldman earnings report!

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Goldman Sachs Group, Inc. (GS) - free report >>

Published in