Goldman Sachs shares tumble despite forecast-beating 3Q report

Goldman Sachs CEO

Goldman Sachs Group Inc. underperformed in the stock market on Tuesday as its shares settled in the negative territory despite posting good numbers on its third quarter earnings report.

 

Goldman Sachs shares were the worst performer on Tuesday under Dow Jones Industrial Average index after dropping 1.4% to $236.09 per share. This decline caused the blue chip index to give up some gains after breaking the psychologically important 23 000-level.

The bank reported a $5.02 earnings per share for the past three months ending September, up from the $4.88 earnings per share in the same period last year. The figure also surpassed economists’ expectations of just $4.17 earnings per share.

But the report was not enough for the bank to recover from a sorry loss yesterday.

Goldman Sachs shares and other bank firms were hugely impacted by the earnings report from Institutionalist Client Services, which showed a 17% drop in its revenue at $3.12 billion. Bank sector offset the sharp gains made by health sector.

GS recorded an $8.3 billion revenue in the past quarter versus $7.5 billion expected revenue, with its investing and lending income scoring its best performance in three years with $1.9 billion, equivalent to a 35% climb compared to a year prior.

The firm’s fixed income saw a sharp decline of 26% but its net income still registered positive result of $2.1 billion, versus a forecast of $1.7 billion.

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