Goldman raises 2020 earnings estimates and believes profits will post a big surprise next year

Traders work during the opening bell at the New York Stock Exchange (NYSE) on March 19, 2020, at Wall Street in New York City.
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This strong earnings season is giving Goldman Sachs more conviction that companies can recover from the coronavirus recession faster and stronger than expected. 

The Wall Street firm hiked its 2020 S&P 500 earnings estimate to $130 per share from $115 per share. Goldman's new estimate implies about a 20% decline in growth for earnings compared to last year. 

"Earnings season is coming to a close and S&P 500 results cleared an extremely low bar," Goldman Sachs chief economist David Kostin told clients.