Goldman Sachs (GS) Falls Following Disappointing Q3 Results

Shares of Goldman Sachs (NYSE: GS), one of two remaining larger independent investment banks, are 9% lower this morning after the company reported Q3 results which were better-than-expected on the bottom line but lower-than-expected on the top line. Profits dropped 70% in the quarter.

Goldman Sachs reported Q3 EPS of $1.81, 10 cents better than the analyst estimate of $1.71. Revenues for the quarter were $6.04 billion, versus the consensus of $6.23 billion and $12.3 billion in last year's Q3.

Goldman said its book value per common share increased 2% during the quarter to $99.30. The firm's Tier 1 Ratio was 11.6% at the end of the quarter.

Goldman net revenues in Investment Banking were $1.29 billion, 40% lower than the third quarter of 2007 and 23% lower than the second quarter of 2008. Net revenues in Trading and Principal Investments were $2.70 billion, 67% lower than the third quarter of 2007 and 52% lower than the second quarter of 2008. Net revenues in Asset Management and Securities Services were $2.05 billion, 4% higher than the third quarter of 2007 and 5% lower than the second quarter of 2008.

Operating expenses were $5.08 billion, 37% lower than the third quarter of 2007 and 23% lower than the second quarter of 2008.

Lloyd C. Blankfein, Chairman and Chief Executive Officer of Goldman Sachs said, "This was a challenging quarter as we saw a marked decrease in client activity and declining asset valuations. Despite the deteriorating market conditions, the focus of our people and strength and breadth of our client franchise produced a solid performance in a tough environment. We remain well-positioned to meet the needs of our clients and identify and act on the right market opportunities."

You May Also Be Interested In

• Trex Company names Brian J. Taylor as its first chief commercial officer