Goldman Sachs Group, Inc failed to hit Wall Street estimates this week, posting that net income fell 27 percent in the third quarter. While analysts had expected a decline, the forecast was still better than the reality: with trading emerging from the fog as the sole beacon of hope out of the bank’s four core divisions.
Going on 150 years as a United States—and, therefore, global—financial institution, Goldman Sachs has now promised investors a new strategic update will come at the top of the year. With posted income about the $30 million below the $1.828 billion estimated (by Bloomberg), the $4.79 earnings per share was definitely much lower than the $6.28 EPS posted one year ago; it is also still below the $4.86 that analysts had expected.
In addition to this third-quarter revenue of $8.32 billion was also down from the $8.56 billion posted last year. This, however is the only improvement, posting slightly higher than the $8.31 billion analysts had originally expected.
About to finish his firs year as Goldman Sachs Chief Executive David Solomon comments, ‘Our results through the third quarter reflect the underlying strength of our global client franchise and its ability to produce solid results in the context of mixed operating environment.”
Indeed, trading has been a tough go for Goldman over the past couple years. As a matter of fact, this was an area of growth that Solomon vowed he would improve. And whatever he has done, it appears to be working: trading is up 6 percent in revenues on the year. Now at a total of nearly $3.3 billion, both equities and fixed-income revenues are reaching at new highs.
Solomon goes on to say, “We continue to execute on our strategic priorities, including investing in important growth opportunities in our existing and new businesses and in delivering for our clients in the most efficient and effective manner possible.”