Goldman Sachs Shares Fall Despite Earning Beat

Published on: 17 Oct, 2017

Goldman Sachs Group Inc. (NYSE: GS) on Tuesday reported third-quarter revenue and earnings that easily topped analysts’ estimates.

The investment bank said third-quarter net income increased 2 percent to $2.13 billion, or $5.02 per share, compared with $2.09 billion, or $4.88 per share, a year earlier. Analysts polled by Thomson Reuters had estimated earnings of $4.17 per share.

Total revenue rose slightly 2 percent to $8.33 billion in the third quarter, beating analysts’ estimate of $7.54 billion.

“Our overall performance this year has been solid and provides a good foundation on which to execute and deliver our growth initiatives,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer.

Strong growth in investment and lending revenue offset the decline in trading revenue. Investment and lending revenue rose 35 percent to $1.88 billion year-over-year, while equity securities revenue jumped 51 percent to $1.39 billion.

Revenue from fixed-income, currencies and commodities trading fell 26 percent to $1.45 billion.

"Operating results were a beat to us driven by better revenues in all segments but investment management," analysts at Keefe, Bruyette & Woods said in a note, CNBC reported. "Overall, GS posted solid results this quarter and the stock should do well with a rebound in revenue."

Goldman’s shares fell 1.62 percent to $238.12 per share in the early trading in New York. The stock was flat this year, while the benchmark S&P 500 gained 14.2 percent year-to-date.

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