Will Trading Weakness Impact Goldman's (GS) Q3 Earnings?
Zacks Investment Research | Oct 12, 2017 09:25PM ET
Expected slump in trading business is likely to adversely affect The Goldman Sachs Group, Inc.’s (NYSE:GS) third-quarter earnings, to be reported on Oct 17. Moreover, the bank is anticipated to record year-over-year decline in earnings and revenues.
Goldman’s second-quarter 2017 results recorded a positive earnings surprise of 17.6%, driven by higher equities revenues and low expenses. However, lower fixed income revenues thwarted the bottom line. Notably, the quarter witnessed challenging market-making environment, reduced levels of volatility and low client activity levels.
This earnings beat translated into impressive price movement for the company. During the three-month period ended Sep 30, shares of Goldman gained 6.9%.
Will the upswing in stock price continue post third-quarter earnings release? It majorly depends on whether the firm is able to beat on earnings this time. Notably, Goldman recorded positive earnings surprise in three of the last four trailing quarters as depicted below:
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