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GS (Goldman Sachs) earnings 3Q 2022

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Goldman Sachs CEO David Solomon speaks during an interview with Bloomberg Television at the Milken Institute Global Conference in Beverly Hills, CA, USA, Monday, April 29, 2019.

Patrick T. Fallon | Bloomberg | Bloomberg | Getty Images

goldman sachs Third-quarter results released Tuesday were a better-than-expected trading result, beating analyst expectations for earnings and earnings.

Here are the numbers:

  • Earnings: $8.25 per share.Estimated $7.69 per share, according to Refinitiv
  • Revenue: $11.98 billion, expected $11.41 billion

Earnings fell 43% to $3.07 billion, or $8.25 per share, the company said, beating analysts’ estimates of $7.69 per share surveyed by Refinitiv. Revenue fell 12% to $11.98 billion, beating estimates by more than $500 million. A decline in Goldman’s profits and earnings was expected after his IPO boom last year cooled off this year.

Bank shares rose 2.9% in pre-market trading.

Goldman CEO David Solomon said the results showed the company’s “strength, breadth and diversity”, adding that it has officially announced corporate reorganization It was reported earlier this week.

“Today, we are entering the next phase of our growth, introducing a restructuring of our business to better leverage One Goldman Sachs’ dominant operating model,” said Solomon. We believe evolution will lead to higher, more lasting returns and unlock long-term value for our shareholders.”

Goldman’s fixed income traders took advantage of increased client activity in fixed income and currencies amid volatile markets to generate $3.53 billion in revenue, nearly $500 million above analyst estimates .

Equity traders’ revenues were $2.68 billion, slightly higher than the previous year’s estimate of $2.59 billion, down 14%.

Strong trading results fell short of analyst expectations of $1.84 billion and more than offset the failure of Investment Banking, where revenues fell 57% to $1.58 billion.

Results for the quarter were consistent with Goldman’s competitors.including rivals JP Morgan Chase When Morgan Stanley Investment banking revenues declined sharply in the third quarter, but fixed income performed better than expected as volatile markets helped boost institutional business.

An open question is how long the bank’s consumer business will last.give moneyis a sore topic among investors as it drags on to the company while its stock price is falling.

Corporate restructuring 4 main divisions According to three who knows the planThe move will split Goldman’s consumer business into two new divisions, the people said.

Goldman’s stock trades at the lowest price-to-tangible book ratio among the six largest US banks, excluding Citigroup, and Solomon wants to make sure it’s up to the task.

The bank’s share price fell nearly 20% by Monday this year, compared to a 26% drop in the KBW Bank Index.

Last week, JP Morgan and Wells Fargo generated better-than-expected interest income and beat third-quarter profit and earnings expectations. city ​​group Analyst estimates also beat, Morgan Stanley missed as volatile market took the toll About the investment management business.

This story is a work in progress. Please check the latest information.

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