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
Q2 Hedge Funds Resource Page Now LIVE!!! Lives, Conferences, Slides And More [UPDATED 7/6 22:21 EST]
Simply click the menu below to perform sorting functions. This page was just created on 7/1/2020 we will be updating it on a very frequent basis over the next three months (usually at LEAST daily), please come back or bookmark the page. As always we REALLY really appreciate legal letters and tips on hedge funds 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.