Shares of Goldman Sachs (GS) gained in trading after the bank reported robust results for the third quarter. The bank reported Q3 earnings of $8.40 per share, a decline of 2.5% year-over-year, which beat analysts’ consensus estimate of $6.89 per share.
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Goldman Sachs’ Q3 Revenues Growth Driven by Equity Trading
Furthermore, Goldman Sachs’ revenues increased by 7% year-over-year to $12.7 billion, above analysts’ expectations of $11.7 billion. This growth was driven by higher equity trading revenues that soared 18% year-over-year to $3.5 billion. The rise in equity trading revenues was due to strong performance in both derivatives and cash trading.
Meanwhile, investment banking revenue surged by 20% year-over-year to $1.87 billion and exceeded analysts’ estimate of $1.62 billion. This growth was fueled by robust debt and equity issuance.
Both equity trading and revenues generated from investment banking are a part of the bank’s global banking and markets business, which posted revenues of $8.5 billion in Q3 and comprised more than 64% of the bank’s total revenues.
Goldman Sachs Announces Quarterly Dividend
The bank’s Board of Directors declared a quarterly dividend of $3 per share to be paid on December 30 to common shareholders of record on December 2, 2024. Additionally, the bank bought back stock worth $1 billion in the third quarter.
Is GS Stock a Buy?
Analysts remain bullish about GS stock, with a Strong Buy consensus rating based on 12 Buys and four Holds. Over the past year, GS has increased by more than 60%, and the average GS price target of $532.14 implies an upside potential of 1.8% from current levels. These analyst ratings are likely to change following GS’ results today.
