Goldman Sachs is set to report third-quarter earnings — here’s what the Street expects

Finance

Goldman Sachs is scheduled to report third-quarter earnings before the opening bell Tuesday.

Here’s what Wall Street expects.

  • Earnings: $5.38 a share, a 7.1 percent increase from the year-ago period, according to analysts surveyed by Refinitiv.
  • Revenue: $8.4 billion, an increase of almost 1 percent from a year earlier.
  • Trading Revenue: $3.16 billion (Equities trading of $1.73 billion, fixed income of $1.41 billion), according to FactSet.
  • Investment Banking Revenue: $1.8 billion.

Chief Executive Officer David Solomon, 56, officially took control of the bank just as the quarter ended on Oct. 1. Before that, he rearranged the company’s top managers, promoting insiders who had spent time with him in investment banking roles. He named John Waldron as the bank’s president and chief operating officer and Stephen Scherr the firm’s chief financial officer.

Solomon’s main challenge is to make good on a plan to boost revenue by $5 billion by broadening its banking and trading client base, finding growth in smaller markets and pushing into retail products like personal loans. Part of that plan has been to send partners to locales including Seattle, Atlanta, Dallas, and Toronto to shrink the distance to clients.

The bank’s shares have fallen 6 percent in the last month and are about 21 percent below its high this year. Concern over lackluster trading revenue and slowing activity in mergers markets is weighing on Goldman and its investment bank rival Morgan Stanley more than other banks.

This story is developing. Please check back for updates.