Goldman's stock drops as profit falls below expectations
Shares of Goldman Sachs Group Inc. dropped 1.3% in premarket trading Tuesday, after the bank and broker reported a third-quarter profit that fell more than expected, while revenue topped forecasts, although investment banking revenue fell shy. Net income declined to $1.79 billion, or $4.79 a share, from $2.45 billion, or $6.28 a share, in the year-ago period. The FactSet consensus for earnings per share was $4.81. Revenue fell 6% to $8.32 billion, just above the FactSet consensus of $8.31 billion. Investment banking revenue fell 15% to $1.69 billion, below the expectations of $1.71 billion, while institutional client services revenue rose 6% to $3.29 billion to beat expectations of $3.19 billion. Equities revenue rose 5% to $1.88 billion to top expectations of $1.79 billion and fixed income, currency and commodities (FICC) revenue grew 8% to $1.41 billion to beat expectations of $1.37 billion. The stock has lost 2.7% over the past three months through Monday, while the Dow Jones Industrial Average has slipped 2.1%.
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