Goldman Sachs reported diluted earnings per share (EPS) of $2.90 ($1.43 billion earnings) in third quarter fiscal year 2015 (3QFY15), a decrease of 36.5% compared to $4.57 per diluted common share in 3QFY14.
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“We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth”, Chief Executive Lloyd Blankfein said in a statement.
Goldman Sachs Group Inc.’s (NYSE: GS)profit plummeted for the second quarter in a row as revenue from bond trading took a hit.
Goldman said revenue from fixed-income, currency and commodity trading, fell 33 percent to $1.46 billion. Goldman stock’s 12-month consensus target price is $210.21, centralizing a return potential of more than 17% over the stock’s last quoted price. Susquehanna cut their price target on shares of Goldman Sachs from $219.00 to $190.00 and set a “neutral” rating for the company in a research note on Thursday, October 8th. When the decision was reported by the Wall Street Journal earlier this summer, the move appeared to be prompted by an incident this summer in which hackers targeted business wire services to get market-moving data early.
“Any quarter where you have extreme market volatility like you did in the third quarter, you’re going to have a few mark-to- market issues”, Ryan said. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $2.94 per share. The company has a market capitalization of $81.69 billion and a PE ratio of 10.71.
Goldman Sachs joins the likes of Citigroup Inc.
Goldman Sachs climbed 1.6 percent to $182.41 at 1:03 p.m.in New York. “During the quarter, the firm recorded $1.45 billion in net provisions for mortgage-related litigation and regulatory matters”, the company said at that time.
Revenue came in at $6.86 billion against Bloomberg estimates of $7.12 billion. Revenue fell 7.4% to $18.496 billion, missing views for $18.541 billion.
The Foolish bottom lineAny investment bank can have a bad quarter when economic conditions are unfavorable, and that’s exactly what we’ve seen with Goldman’s peers like JPMorgan Chase. Investment and Lending revenues fell 60% to $7670 million, while Investment Management revenues fell 3% to $1.42 billion. The Business is a global investment banking, securities and investment management company that provides a variety of financial services to a diversified customer base including financial institutions, corporations, Governments and individuals.
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Blankfein, 61, announced in September that he has a “highly curable” form of lymphoma and will undergo chemotherapy over the next several months.
