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Goldman (GS) Tops Q3 Earnings on Strong Revenue Growth

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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 $4.88, handily beating the Zacks Consensus Estimate of $3.86. Also the reported figure reflects a significant improvement of 68% year over year.

Higher revenues were primarily responsible for the beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Goldman depicted pessimism prior to the earnings release. The Zacks Consensus Estimate declined slightly over the last 7 days.  

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 11.4% in the trailing four quarters.

GOLDMAN SACHS Price and EPS Surprise

GOLDMAN SACHS Price and EPS Surprise | GOLDMAN SACHS Quote

Revenue Came in Higher than Expected 

Goldman posted revenues of $8.2 billion, surpassing the Zacks Consensus Estimate of $7.6 billion. Moreover, revenues improved19% on a year-over-year basis.

Key Stats to Note

Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.96 billion in the quarter, up 34% year over year.

Total operating expenses increased 10% year over year to $5.3 billion.

Goldman ranked first in globally announced mergers and acquisitions year-to-date.

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 (Strong Buy) Rank stocks here.)

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

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