Goldman Sachs and Blackrock released their third quarter earnings reports before opening bell this morning. Goldman Sachs posted earnings of $4.88 per share on $8.17 billion in revenue. Analysts had been expecting earnings of $3.82 per share and $7.36 billion in revenue. In last year’s third quarter, the firm posted $2.90 per share in earnings and $6.86 billion in revenue.
Blackrock reported $5.14 per share in adjusted earnings, smashing the consensus of $4.98 per share. However, the firm missed consensus on revenue, coming in at $2.84 billion, compared to the consensus of $2.87 billion. In last year’s third quarter, the firm reported $2.9 billion in revenue and $5 per share in earnings.
Goldman Sachs rises on solid earnings
Dov Gertzulin's DG Capital is having a strong year. According to a copy of the hedge fund's letter to investors of its DG Value Partners Class C strategy, the fund is up 36.4% of the year to the end of June, after a performance of 12.8% in the second quarter. The Class C strategy is Read More
Net interest income fell to $614 million from $842 million, missing the consensus of $841 million by a wide margin. Market making revenue surged, however, rising from $1.73 billion last year to $2.72 billion this year. Investment banking revenue slid to $1.54 billion from $1.56 billion, compared to the consensus of $1.47 billion, while equities revenue grew 2% to $1.78 billion. FICC sales and trading revenue also beat consensus, coming in at $1.96 billion compared to the Street’s estimate of $1.7 billion.
Goldman Sachs had $1.35 trillion in assets under management in the third quarter, marking a 13% year over year increase. Equity net inflows amounted to $268 billion, while fixed income net inflows were $600 billion in the quarter.
Shares of Goldman Sachs edged upward by as much as 1.7% to $171.88 in premarket trades this morning.
Blackrock little changed by earnings
Blackrock’s reported earnings were $5.26 per share, compared to $5 per share last year, while net inflows were $70 billion, which includes long-term net inflows of $55 billion.
The firm’s retail segment recorded net flows of -$2.2 million from $554.8 million last year. The iShares business saw net flows of $51.3 million from $1.2 billion last year. The active institutional segment saw $7.5 million in net flows from $1 billion last year, while index net flows were -$1.4 million from $1.9 billion last year. Equity flows declined to $13.4 million from $2.6 billion last year, while fixed income flows fell to $37 million from $1.6 billion.
Cas management assets under management rose 4% to $389 billion, while advisory assets under management amounted to $10.3 billion at the end of the quarter.
Blackrock shares edged upward by as much as 0.68% to $357 in premarket trades this morning.