U.S. investment bank Goldman Sachs’ (GS) third-quarter results beat Wall Street forecasts due
to better-than-expected bond trading results.
The New York-based financial firm reported Q3 earnings per share of $8.25 U.S. compared to
$7.69 U.S. a share that was expected by analysts, according to Refinitiv data.
Revenue at Goldman Sachs came in at $11.98 billion U.S. versus $11.41 billion U.S. that had
been expected.
Goldman’s bond traders generated $3.53 billion U.S. in revenue during the July through
September period, a 41% increase from a year earlier and $500 million U.S. more than Wall
Street forecasts.
However, equity traders brought in $2.68 billion U.S. of revenue, a 14% drop from a year earlier.
Goldman Sachs’ added that revenue from its investment banking unit that is focused on initial
public offerings (IPOs) and mergers and acquisitions (M&A) fell 57% to $1.58 billion U.S. in Q3,
well below analysts’ $1.84 billion U.S. forecast.
The market for stock issuance and deals has dried up this year as markets around the world
have fallen amid a selloff in equities.
Goldman’s latest results were consistent with other U.S. banks. JPMorgan Chase (JPM)
and Morgan Stanley (MS) each posted sharp declines in third-quarter investment banking
revenue, but those losses were offset by better-than-expected bond trading results.
Goldman Sachs’ stock is down 22% this year and trading at $306.71 U.S. per share.
