Goldman Sachs Stock Rises as Results Surpass Estimates

Goldman Sachs (GS) reported third-quarter earnings that were better than analysts expected Tuesday morning, continuing a stretch of strong big bank earnings kicked off last week by rivals JPMorgan Chase (JPM) and Wells Fargo (WFC).

The shares rose more than 3% premarket after the firm reported $12.7 billion in total revenue, above the $11.82 billion Goldman reported a year ago and ahead of analysts' consensus as compiled by Visible Alpha.

Net interest income (NII) came in at $2.62 billion, up from $1.55 billion a year ago and better than the $1.95 billion analysts had projected. Goldman's profits came in just shy of $3 billion, nearly half a billion better than analysts expected and up from $2.06 billion in the third quarter of 2023.

Goldman Extends Stretch of Banks Beating Estimates

Goldman reported Tuesday alongside Bank of America (BAC), which also surpassed estimates. On Friday JPMorgan turned in estimate-beating results, while Wells Fargo saw profits drop less year-over-year than analysts had expected.

The financial-sector results come weeks after the Federal Reserve cut interest rates for the first time in four years. Analysts have said the first rate cut, and others likely to come in the next year, could help boost future bank earnings by lowering deposit costs and sparking activity like mergers and acquisitions.

Goldman Sachs shares are up over 35% this year through Monday's close.

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