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Tickers in this Article: GS
Goldman Sachs Group (NYSE:GS) announced its results for the third quarter on October 16, 2012. Goldman Sachs is a global investment banking and securities firm that specializes in investment banking, trading and principal investments, asset management and securities services.

Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Can Earnings Guidance Accurately Predict The Future?

The Numbers: Goldman Sachs Group beat expectations with its latest EPS and revenue figures. The company reported $2.85 per share versus the $2.04 per share estimate and revenues of $8.35 billion versus the $6.28 billion estimate. EPS rose from a loss of 84 cents per share in the year-ago quarter while revenue climbed 49.5%. Goldman Sachs Group bounced back last quarter with a year-over-year revenue increase after four consecutive quarters of revenue declines. Goldman Sachs Group reported net income of $1.51 billion during the third quarter.

Management Quote: "This quarter's performance was generally solid in the context of a still challenging economic environment," said Lloyd C. Blankfein, Chairman and Chief Executive Officer. "We continue to be disciplined in managing our operations and capital, while effectively serving our clients' needs. The focus on these priorities will serve our shareholders and the firm well over the longer term."

Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from $3.41 a share to $3.02 over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $12.47 a share to $10.35 over the last 60 days.

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