Goldman Sachs to Announce Q3 Earnings: Key Expectations

Goldman Sachs (GS) is set to release its third-quarter earnings on Tuesday, October 14. Anticipation surrounds this announcement, as analysts expect strong performance driven by robust trading revenue and investment banking fees. The firm’s stock has experienced a remarkable 37.4% increase since the start of the year, outperforming the overall market.

Key Earnings Expectations for Q3

Analysts forecast that Goldman Sachs will report earnings per share (EPS) of $11.02, marking a significant 31% growth year-over-year. Revenue is projected to rise by 11.2% to approximately $14.1 billion. Investors will closely monitor management’s insights regarding the U.S. economic landscape and future outlook.

Analyst Ratings and Price Targets

• BMO Capital’s Brennan Hawken has initiated coverage with a Hold rating and a price target of $785.
• Evercore’s Glenn Schorr upgraded his target for GS stock to $830 from $752, maintaining a Buy rating.
• TipRanks’ AI Analyst issued an Outperform rating with a price target of $897, suggesting a 14% upside potential.

Hawken acknowledges Goldman Sachs’ strong operating leverage and potential benefits from market recovery but believes much of the upside is already reflected in the share price. In contrast, Schorr highlights the strong summer performance of major banks, indicating that both Goldman Sachs and JPMorgan could outperform expectations.

Market Outlook and Investor Sentiment

Options traders are forecasting a significant reaction to the Q3 earnings report. Analysis shows an expected move of about 4.4% in either direction for GS stock following the announcement. Currently, Wall Street holds a Moderate Buy consensus rating on Goldman Sachs, based on six Buy ratings and eight Holds.

Conclusion

As Goldman Sachs prepares for its Q3 earnings call, the market keenly anticipates insights into the firm’s performance and economic outlook. Investors will be watching closely to gauge the implications for GS stock moving forward.