Markets
GS

Goldman (GS) Q3 Earnings Slump on Lower Revenues

Have you been eager to see how The Goldman Sachs Group, Inc.GS 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 Miss

Goldman came out with earnings per share of $2.90, missing the Zacks Consensus Estimate of $3.08. Lower revenues aided by fall in all segments except investment banking was primarily responsible for the miss.

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 has moved down 12% over the last 7 days.

However, Goldman has a decent earnings surprise history. Before posting earnings miss in Q3, the company delivered positive surprises in the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 28.63% in the trailing four quarters.

Revenue Came In Lower Than Expected

Goldman posted revenues of $6.9 billion, which significantly miss the Zacks Consensus Estimate of $7.3 billion. Moreover, it compared unfavorably with the year-ago number of $8.4 billion.

Key Stats to Note:

  • Goldman recorded the highest investment banking net revenues for the nine-months since 2007
  • Goldman repurchased 5.4 million shares of its common stock for a total cost of $1.05 billion
  • Annualized return on average common shareholders' equity (ROE) was recorded at 7.0%

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. It all depends on what sense the just-released report makes to the analysts.

How the Market Reacted So Far

Following the earnings release, Goldman shares were down 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 not 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!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

GOLDMAN SACHS (GS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GS

Other Topics

Earnings Investing Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More