Goldman Sachs Group Inc (NYSE:GS) stock took a hit on Tuesday despite reporting an earnings beat for the third quarter of 2017.
Goldman Sachs Group Inc reported earnings per share of $5.02 for the third quarter of the year. This is an increase over its earnings per share of $4.88 from the same time last year. It also came in above Wall Street’s earnings per share estimate of $4.17, but wasn’t enough to combat GS stock’s decline today.
Goldman Sachs Group Inc’s revenue of $8.32 billion would also typically be good news for GS stock. It is up from revenue of $8.17 billion in the third quarter of 2016. The financial company’s revenue also beat analysts’ estimate of $7.54 billion for the quarter.
It’s likely that GS stock was hurt today by Institutional Client Services results in its third quarter of 2017. The company notes that its Institutional Client Services revenue was $3.12 billion, which is down 17% from the same period in the year prior.
Goldman Sachs also reported Fixed Income, Currency and Commodities Client Execution revenue of $1.45 billion for the most recent quarter. This represents a 26% drop from what was reported in the third quarter of 2016. GS attributes this to lower revenue in “commodities, interest rate products and credit products and lower net revenues in currencies.”
Goldman Sachs Group Inc notes that its Equities revenue for the third quarter of 2017 was $1.67 billion. This is down 7% from the Equities revenue that the company reported in the same quarter of the previous year. GS says that this was caused by lower revenue in equities client execution.
GS stock was down 1% as of Tuesday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
