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David Solomon, chief government 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 referred to as Refinitiv
- Revenue: $11.19 billion
- Trading income: fastened revenue $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 beneath 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 yr because the Federal Reserve boosted rates of interest to gradual the economic system down. With indicators that exercise has picked up these days, analysts shall 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 patrons for undesirable operations, and its publicity to business actual property has resulted in write-downs as properly.
Last week, Goldman mentioned that its sale of lending enterprise GreenSky will lead to a 19 cents per share hit to third-quarter outcomes.
Analysts shall be eager to hear Solomon’s view on the funding banking outlook, in addition to how the remaining components of its client effort — primarily, its Apple Card enterprise — match within the newest iteration of Goldman Sachs.
Goldman shares have dropped 8.4% this yr by means of 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.
This story is growing. Please examine again for updates.
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