Goldman Sachs is about to report third-quarter earnings —right here’s what the Road expects

Goldman Sachs is scheduled to report third-quarter earnings earlier than the opening bell Friday.

Here is what Wall Road expects:

• Earnings: $10.11 per share, 13% increased than a 12 months earlier, in accordance with Refinitiv.
• Income: $11.67 billion, 8.3% increased than a 12 months earlier.
• Funding Banking Income: $2.93 billion, in accordance with StreetAccount estimates.
• Buying and selling Income: Mounted Revenue: $1.97 billion, Equities: $2.08 billion,

How will Goldman Sachs climate the decline in third-quarter bond buying and selling income?

That is a key query for Goldman, the place buying and selling makes up a much bigger slice of revenues than at its large financial institution friends.

Nonetheless, CEO David Solomon has a number of levers to tug to offset a drop in mounted earnings income. Goldman has the world’s premier funding banking franchise, the place analysts anticipate sturdy income from mergers and IPO exercise.

Its wealth and asset administration companies ought to profit from excessive fairness values. And the agency’s shopper banking companies have continued to develop. All that feeds into Solomon’s efforts to enhance the stability of outcomes on the firm.

Analysts are prone to ask Solomon concerning the rationale for his $2.24 billion acquisition of fintech lender GreenSky. The deal is anticipated to shut by the primary quarter of 2022.

The financial institution stated final month that CFO Stephen Scherr would step down by year-end, to be replaced by Denis Coleman, the present co-head of the agency’s World Financing Group.

Goldman shares have climbed 47% this 12 months, exceeding the 37% rise of the KBW Financial institution Index

Goldman is the final of the six largest U.S. banks to report earnings. JPMorgan Chase, Bank of America, Morgan Stanley, Citigroup, Wells Fargo all exceeded expectations for revenue and income, helped by reserve releases and powerful funding banking income.

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