Banking: Goldman Sachs beats Wall Street’s lowered earnings expectations

by | Oct 17, 2023 | Stock Market

Goldman Sachs Group Inc. reported a lower third-quarter profit but managed to beat reduced earnings expectations on record revenue in its equities and financing units on Tuesday. Goldman Sachs Group’s
profit for the three months ended Sept. 30 dropped by about 36% to $1.88 billion, or $5.47 a share, from $2.96 billion, or $8.25 a share, in the year-ago quarter. The latest figure includes $2.41 a share in one-time items.

Analysts tracked by FactSet expected Goldman Sachs to report earnings of $5.42 a share. Third-quarter revenue fell to $11.82 billion from $11.98 billion in the year-ago quarter, ahead of the estimate of $11.15 billion. Goldman Sachs stock rose fractionally in pre-market trading. Global banking and markets generated net revenues rose 6% to $8 billion, driven by its performance in fixed income, currency and commodities and equities. The bank also said it booked record quarterly revenue in financing. Net revenue for equities rose 8% to $2.96 billion, as it booked higher equities financing revenue, which reflected “significantly higher net revenue in prime financing,” the bank said. This was offset by lower portfolio financing revenue, while revenue increased in equities intermediation, primarily in derivatives. Investment banking fees were unchanged at $1.55 billion, as the bank benefitted from debt underwriting, which was driven by leveraged finance activity, while a decline in mergers and acquisitions weighed on its advisory business. Chief Executive D …

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