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David Solomon, chief government officer of Goldman Sachs Group Inc., on the Goldman Sachs Monetary Companies Convention in New York, Dec. 6, 2022.
Michael Nagle | Bloomberg | Getty Pictures
Goldman Sachs is scheduled to report third-quarter earnings earlier than the opening bell Tuesday.
This is what Wall Road expects:
- Earnings: $5.31 a share, in line with LSEG, previously referred to as Refinitiv
- Income: $11.19 billion
- Buying and selling income: fastened revenue $2.8 billion, equities $2.73 billion, per StreetAccount
- Funding banking income: $1.48 billion
Is Wall Road deal-making on the mend?
Amongst its massive financial institution friends, Goldman Sachs is essentially the most reliant on funding banking and buying and selling income.
Whereas it is made efforts below 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 administration, it’s Wall Road that powers the corporate. Final quarter, buying and selling and advisory accounted for two-thirds of Goldman’s income.
That is been a headwind as mergers, preliminary public choices and debt issuance all have been muted this 12 months because the Federal Reserve boosted rates of interest to sluggish the economic system down. With indicators that exercise has picked up recently, analysts will likely be keen to listen to about Goldman’s pipeline of offers.
On 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 industrial actual property has resulted in write-downs as nicely.
Final week, Goldman mentioned that its sale of lending enterprise GreenSky will lead to a 19 cents per share hit to third-quarter outcomes.
Analysts will likely be eager to listen to 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 12 months via Monday, a greater displaying than the 21% decline of the KBW Financial institution Index.
Final 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 creating. Please verify again for updates.
