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Morning Earnings Roundup: Better Investing at Goldman Sachs

By: Wyatt Investment Research
Posted: 10/16/2012 11:51:00 AM
Referenced Stocks: GS;JNJ;KO;MS

For the world's premier investment bank, Goldman Sachs ( GS ) hadn't had much luck investing of late. That changed this past quarter.

Goldman Sachs swung to a third-quarter profit by boosting its investment-banking revenue by 49% from a year ago. The bank's overall earnings of $1.51 billion were a complete 180 from the $393 million in losses it suffered in the third quarter of 2011. Net revenue more than doubled to $8.35 billion.

Earnings per share of $2.85 were far greater than the 84-cents-per-share loss Goldman reported last year, and outpaced analyst estimates of $2.12 per share. The earnings beat, plus a four-cent hike in its quarterly dividend, has pushed GS shares up close to 1% in early trading today.

Fellow investment-banking giant Morgan Stanley ( MS ) , which reports earnings on Thursday, is benefitting from Goldman's improved investing numbers. Morgan Stanley shares are up a half-percent today.

Here's how two other companies that reported earnings this morning fared: