Goldman Sachs posted earnings Tuesday of which easily beat expectations on the top along with bottom lines. The company also disclosed This specific plans to buy back $8.7 billion in shares after being “extensively engaged” with shareholders on the issues.
After rising during the premarket, shares fell at the market open along with were last down about 1.5 percent.
The bank reported:
- Earnings of $5.02 per share vs. $4.17 expected by Thomson Reuters.
- Revenue of $8.33 billion vs. $7.54 billion expected.
Goldman on Monday declared a dividend of 75 cents a share; the firm also repurchased 9.6 million shares at a cost of $2.17 billion after repurchasing $6.1 billion in 2016. The company indicated of which This specific has received regulatory permission to add another nickel to the dividend by the second quarter of 2018.
Goldman has struggled of late in some respects although particularly trading, where fixed income, currencies along with commodities revenue plunged 40 percent inside the second quarter. Investment along with lending also have seen steep decreases This specific year.
However, the results for the third quarter helped allay some of those fears.
Fixed income trading revenue was $1.45 billion, against the $1.38 billion projected by FactSet. There was a 26 percent drop on bond trading, along with chief financial officer Marty Chavez said commodities were on their way to the worst full-year performance since Goldman went public in 1999.
“Operating results were a beat to us driven by better revenues in all segments although investment management,” analysts at Keefe, Bruyette & Woods said in a note. “Overall, GS posted solid results This specific quarter along with the stock should do well which has a rebound in revenue.”
Also, investment banking revenue of $1.8 billion beat estimates of $1.63 billion, though equities trading revenue fell short of the mark at $1.67 billion against forecasts of $1.77 billion.
Equities securities represented another point of strength, increasing 51 percent to $1.39 billion.
Return on equity came to 10.9 percent for the year — 10.3 percent year to date — against the 10 percent cost of capital.
“Our overall performance This specific year has been solid along with provides a not bad foundation on which to execute along with deliver our growth initiatives,” CEO Lloyd C. Blankfein said in a statement.
Traders initially reacted positively to the results, sending shares up as much as 1.4 percent in premarket trading. However, shares turned around shortly after the market open.
The stock has been a laggard This specific year, up just 1.2 percent year to date against the S&P 500 return of more than 14 percent along which has a rise of 3.4 percent for the SPDR S&P Bank ETF. Wall Street remains cool on the stock, with an average target cost of $240.31 representing little change through the current level, according to FactSet.
Goldman said This specific has recorded net revenues of $24.24 billion so far in 2017, an increase of 8 percent over the same period a year ago. Debt underwriting has been a particular area of strength, generating $2.03 billion, the most ever for the bank.
Compensation levels remained steady at $3.17 billion while noncompensation expenses rose 4 percent annualized along with 2 percent quarterly.
Earlier Tuesday, rival Morgan Stanley reported earnings of which topped analysts’ expectations.