Goldman Sachs Earnings Cheat Sheet: Profit Streak Snapped by a Loss

S&P 500 (NYSE:SPY) component Goldman Sachs Group Inc. (NYSE:GS) swung to a loss in the third quarter, missing analysts’ forecast. Goldman Sachs is a global investment banking and securities firm that specializes in investment banking, trading and principal investments, asset management and securities services.

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Goldman Sachs Group Earnings Cheat Sheet for the Third Quarter

Results: Reported a loss of $393 million (84 cents per diluted share) in the quarter. The diversified investments company had net income of $1.9 billion or $2.98 per share in the year earlier quarter.

Revenue: Fell 66.5% to $3.59 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GS fell short of the mean analyst estimate of a loss of 6 cents per share. It fell short of the average revenue estimate of $4.78 billion.

Quoting Management: “CEO and investor confidence as well as asset prices across markets were lower in the third quarter given the uncertain macroeconomic and market conditions. Our results were significantly impacted by the environment and we were disappointed to record a loss in the quarter,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “However, we believe the strength of both our client franchise and our balance sheet positions us well for when economies and markets improve.”

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 9.3% to $9.55 billion in the second quarter. The figure fell 5% in the first quarter from the year earlier and dropped 5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $1.09 billion in the second quarter, a profit of $2.73 billion in the first quarter and $2.39 billion in the fourth of the last fiscal year.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 44 cents with net income of $1.85 versus a mean estimate of net income of $2.29 per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $3.20 per share, down from $4.76 ninety days ago. The average estimate for the fiscal year is $7.23 per share, down from $12.18 ninety days ago.

Competitors to Watch: Morgan Stanley (NYSE:MS), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Citigroup Inc. (NYSE:C), UBS AG (NYSE:UBS), Deutsche Bank AG (NYSE:DB), Wells Fargo & Company (NYSE:WFC), Credit Suisse Group AG (NYSE:CS), and Piper Jaffray Companies (NYSE:PJC).

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(Source: Xignite Financials)