Goldman Sachs Earnings: Swings Up, Topping Expectations on Double Digit Revenue Growth

S&P 500 (NYSE:SPY) component Goldman Sachs Group Inc. (NYSE:GS) reported its results for the third quarter. 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 Inc. Earnings Cheat Sheet

Results: Reported a profit of $1.51 billion ($2.85 per diluted share) in the quarter. The financial/investment brokers had a net loss of $393 million or a loss of 84 cents per share in the year-earlier quarter.

Revenue: Rose 49.5% to $8.35 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Goldman Sachs Group Inc. beat the mean analyst estimate of $2.04 per share. It beat the average revenue estimate of $6.28 billion.

Quoting Management: “This quarter’s performance was generally solid in the context of a still challenging economic environment,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “We continue to be disciplined in managing our operations and capital, while effectively serving our clients’ needs. The focus on these priorities will serve our shareholders and the firm well over the longer term.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the third quarter of the last fiscal year, which saw a 47.9% decrease.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 64 cents in the second quarter, by 37 cents in the first quarter, and by 38 cents in the fourth quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $3.41 a share to $3.02 over the last ninety days. For the fiscal year, the average estimate has moved down from $12.47 a share to $10.35 over the last sixty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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