Goldman Sachs' earnings soar, but stock slips
NEW YORK -- Goldman Sachs easily beat analysts' estimates for earnings and revenue in the third quarter.
Net income for common shareholders was $1.5 billion, a turnaround from a loss a year ago. Back then, Goldman suffered as its clients pulled out of the market, scared off by the uncertainty caused by contentious budget negotiations in Congress and a downgrade of the U.S. government's debt rating.
On a per-share basis Goldman earned $2.85, blowing away Wall Street's expectations. Analysts had been predicting $2.19, according to FactSet.
Revenue more than doubled, to $8.4 billion from $3.6 billion, and also beat estimates of $7.2 billion. The bank enjoyed big jumps in revenue from underwriting stock and bond offerings and investment management.
Goldman's stock slipped 81 cents to $123.69 in pre-market trading.