Morning Earnings Roundup: Better Investing at Goldman Sachs

Chris Preston
October 16, 2012

For the world’s premier investment bank, Goldman Sachs (GS) hadn’t had much luck investing of late. That changed this past quarter.

Goldman Sachs swung to a third-quarter profit by boosting its investment-banking revenue by 49% from a year ago. The bank’s overall earnings of $1.51 billion were a complete 180 from the $393 million in losses it suffered in the third quarter of 2011. Net revenue more than doubled to $8.35 billion.

Earnings per share of $2.85 were far greater than the 84-cents-per-share loss Goldman reported last year, and outpaced analyst estimates of $2.12 per share. The earnings beat, plus a four-cent hike in its quarterly dividend, has pushed GS shares up close to 1% in early trading today.

Fellow investment-banking giant Morgan Stanley (MS) , which reports earnings on Thursday, is benefitting from Goldman’s improved investing numbers. Morgan Stanley shares are up a half-percent today.

Here’s how two other companies that reported earnings this morning fared:

  • Coca-Cola (KO): The world’s largest beverage maker reported a 3.9% bump in its third-quarter earnings. Coke’s earnings of 50 cents a share was an improvement over the 48 cents a share the company earned a year earlier; however, it trailed the 51 cents per share analysts were expecting. As a result, the stock is down a half-percent this morning.
  • Johnson & Johnson (JNJ): Sales were up, but profits were down for this longtime consumer staple/pharmaceutical company. Acquisition and research costs pushed profits down 7.3%, but sales increased 6.5% thanks to the company’s recent purchase of medical-device maker Synthes. Despite the profit decline, Johnson & Johnson’s earnings beat Wall Street estimates, pushing the shares up more than 1% in early trading.

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