Banking, finance, and taxes
How Goldman Sachs Won Big on Earnings
Published:
Last Updated:
Goldman Sachs Group Inc. (NYSE: GS) reported its third-quarter earnings results before the markets opened on Tuesday. The company posted $4.88 in earnings per share (EPS) and $7.55 billion in non-interest revenue, versus consensus estimates from Thomson Reuters of $3.79 in EPS on revenue of $7.42 billion. The same period of last year reportedly had EPS of $2.9 billion and $6.86 billion in revenue.
Assets under supervision increased to a record $1.35 trillion, including net inflows of $14 billion in long-term assets under supervision.
Book value per common share increased by 2.6% during the quarter, and 6.0% during the year to date, to $181.25. Basic shares decreased by 1.8% during the quarter to a record low of 418.8 million.
The firm maintained strong capital ratios and liquidity. The firm’s Common Equity Tier 1 ratios as calculated in accordance with the Standardized approach and the Basel III Advanced approach were 14.0% and 12.4%, respectively, and the firm’s global core liquid assets were $214 billion as of September 30, 2016.
In terms of the business segments, Goldman Sachs reported:
- Investment Banking revenues decreased 1% year over year to $1.54 billion.
- Investment Management revenues increased 4% to $1.39 billion.
- Commissions and Fees decreased 12% to $753 million.
- Market Making increased 57% to $2.72 billion.
- Other Principal transactions increased 114% to $1.16 billion.
Lloyd C. Blankfein, chairman and CEO of Goldman Sachs, commented:
We saw solid performance across the franchise that helped counter typical seasonal weakness. We continue to manage our balance sheet conservatively and are benefiting from the breadth of our offerings to clients.
Shares of Goldman Sachs closed Monday down nearly 1% at $169.00, with a consensus analyst price target of $183.20 and a 52-week trading range of $138.20 to $199.90. Following the release of the earnings report, the stock was up 1.7% to $171.88 in early trading indications Tuesday.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
