- Goldman Sachs reported third-quarter earnings and revenue Tuesday that beat analysts' expectations.
- The results were lifted largely by strong bond and stock trading amid a surge in market volatility.
Goldman Sachs beat analysts' expectations for third-quarter earnings and revenue on Tuesday, as market volatility helped boost trading.
Shares climbed 3.29% in pre-market trading after the results were released.
Here are the key numbers:
Revenue: $11.98 billion versus consensus estimates of $11.41 billion
Adjusted earnings per share: $8.25 per share versus consensus estimates of $7.69 a share.
While revenue and EPS were down 12% and 45%, respectively, from a year ago, Goldman's bond trading saw annual gains. Fixed income trading jumped 41% to $3.53 billion, but stock trading slipped 14% to $2.68 billion. Both figures also topped Wall Street estimates.
The stock market's slump hit the investment banking arm as merger and IPO activity stayed quiet. Revenue tumbled 57% to $1.58 billion.
"Against the backdrop of uncertainty and volatility in the markets, we continue to prudently manage our resources and remain focused on risk management as we serve our clients," CEO David Solomon said in a statement. "Importantly, we are confident that our strategic evolution will drive higher, more durable returns and unlock long-term value for shareholders."
He also confirmed a major reorganization. On Monday, the Wall Street Journal reported Goldman plans to combine the investment banking and trading arms while the asset and wealth management divisions would also converge.
Goldman's third-quarter report marks the last of the top Wall Street banks for this earnings season. Rival Morgan Stanley missed forecasts on a sharp fall in investment banking revenues, while Citigroup and JPMorgan both beat estimates.