Goldman Sachs’ quarter soured by disappointing banking revenue, writedowns for Uber and other investments

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Reuters / Shannon Stapleton

  • Goldman Sachs reported third-quarter earnings before markets opened Tuesday.
  • The bank traded as much as 1.8% lower after missing analyst estimates for quarterly earnings per share. The bank also posted a decline in investment-banking revenue.
  • Goldman took a $267 million markdown on public investments in companies like Uber and Tradeweb Markets.
  • Watch Goldman Sachs trade live here.

Goldman Sachs reported third-quarter earnings that missed analyst estimates on Tuesday morning. The firm also reported investment-banking revenue that declined 15% from the prior period.

The investment bank also took a $267 million markdown on public investments in companies like Uber and Tradeweb Markets. It marked the worst performance in three years for the bank’s equity investments, according to Bloomberg.

Goldman stock fell as much as 1.9% on the report.

Here are the key numbers:

  • Revenue: $8.32 billion, versus the $8.31 billion estimate
  • Earnings per share: $4.79, versus the $4.86 estimate
  • Investment banking revenue: $1.69 billion, versus the $1.80 billion estimate
  • Equities sales and trading revenue: $1.88 billion, versus the $1.82 billion estimate
  • Fixed income sales and trading revenue: $1.41 billion, versus the $1.35 billion estimate

“Our results through the third quarter reflect the underlying strength of our global client franchise and its ability to produce solid results in the context of a mixed operating environment,” CEO David Solomon said.

Goldman is among the several banks announcing earnings this week. Citibank and JPMorgan Chase announce thier latest figures Tuesday. Bank of America, Netflix, and American Express are among the other large-cap companies scheduled to release third-quarter reports this week.

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Goldman Sachs closed at $205.82 Monday, up roughly 23% year-to-date.

The bank has 11 “buy” ratings, 12 “hold” ratings, and 2 “sell” ratings from analysts, with a consensus price target of $236, according to Bloomberg data.

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