Goldman Sachs is set to report third-quarter earnings — here’s what Wall Street expects

David Solomon, chief govt officer of Goldman Sachs Group Inc., on the Goldman Sachs Financial Services Conference in New York, Dec. 6, 2022.

Michael Nagle | Bloomberg | Getty Images

Goldman Sachs is scheduled to report third-quarter earnings earlier than the opening bell Tuesday.

Here’s what Wall Street expects:

  • Earnings: $5.31 a share, in accordance to LSEG, previously often called Refinitiv
  • Revenue: $11.19 billion
  • Trading income: mounted earnings $2.8 billion, equities $2.73 billion, per StreetAccount
  • Investment banking income: $1.48 billion

Is Wall Street deal-making on the mend?

Among its huge financial institution friends, Goldman Sachs is probably the most reliant on funding banking and buying and selling income.

While it is made efforts underneath CEO David Solomon to diversify its income stream, first in an ill-fated retail banking push and later because it emphasised progress in asset and wealth management, it is Wall Street that powers the corporate. Last quarter, buying and selling and advisory accounted for two-thirds of Goldman’s income.

That’s been a headwind as mergers, preliminary public choices and debt issuance all have been muted this 12 months because the Federal Reserve boosted rates of interest to sluggish the economic system down. With indicators that exercise has picked up these days, analysts can be keen to hear about Goldman’s pipeline of offers.

At the identical time, Goldman has taken hits from two areas: Its strategic retrenchment away from retail banking has saddled the agency with losses because it finds consumers for undesirable operations, and its publicity to business actual property has resulted in write-downs as nicely.

Last week, Goldman mentioned that its sale of lending enterprise GreenSky will end in a 19 cents per share hit to third-quarter outcomes.

Analysts can be eager to hear Solomon’s view on the funding banking outlook, in addition to how the remaining components of its shopper effort — primarily, its Apple Card enterprise — match within the newest iteration of Goldman Sachs.

Goldman shares have dropped 8.4% this 12 months by Monday, a greater displaying than the 21% decline of the KBW Bank Index.

Last week, JPMorgan, Wells Fargo and Citigroup every topped expectations for third-quarter revenue, helped by better-than-expected credit score prices. Morgan Stanley posts outcomes Wednesday.  

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