“I’m not alarmed by the number, but it was a tougher quarter for them than a few of their peers”, Devin Ryan, an analyst at JMP Group Inc.in New York, said in an interview.
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Analysts were expecting the investment bank to post earnings of $1.45 billion, or $2.91 a share, on revenue of $7.1 billion. Goldman, whose shares were down 1.3 percent in premarket trading, said revenue in its investment banking unit, which underwrites debt and stock offerings and advises on deals, rose 6.3 percent to $1.56 billion.
Loans totaled $622 billion in the third quarter, down 5 percent from previous year during the same period and down 1 percent in constant dollars. Stockholders of record on Wednesday, December 2nd will be given a $0.65 dividend. Financial-advisory revenues soared 36% to $809 million as Goldman remained one of Wall Street’s top banks for mergers and acquisitions. The stock closed last trading session at $184.96, up by 3.04%, with a volume of 5,720,088 shares against an average volume for the last 3 months of 3,189,340. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink.
In the last full fiscal year Goldman Sachs Group, Inc. made 16.99 earnings per share.
As of September, total assets increased 2% to $881 billion and global core liquid assets were $193 billion. The disclosure for this purchase can be found here.
He believes that if other big banks in the USA and Europe back away from trading because of heightened regulatory limits and scrutiny, that actually creates opportunity. JPMorgan Chase & Co. increased their price objective on Goldman Sachs from $168.00 to $169.00 in a report on Tuesday, July 7th. They noted that the move was a valuation call. The brokerage firm raises the price target from $236 per share to $240 per share.
GS reported last quarter earnings on October 15. Finally, Zacks lowered Goldman Sachs from a “buy” rating to a “hold” rating in a report on Friday, June 26th.
Many analysts have commented on the company rating. Thomson Reuters had a consensus analyst price target of $210.83 before the results were announced.
Return on equity fell to 7 percent from 11.8 percent in the same quarter past year – far short of the 30 percent range the bank achieved before the financial crisis. The Firm has four business divisions. Its Institutional Client Services section makes markets and eases customer transactions in fixed income, equity, currency and commodity products.
Goldman emphasized its commitment to trading, despite the fact that other banks have reduced or left the business to concentrate on less-volatile operations that involve less capital. Its investment management segment provides investment and wealth advisory services.
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Goldman’s shares reversed losses in late day trading and gained 3 percent as the broader market rallied.
