David Solomon, chairman and CEO of Goldman Sachs, speaks on CNBC’s Squawk Box at the annual meeting of the World Economic Forum in Davos, Switzerland on January 17, 2024.
Adam Galici | CNBC
Goldman Sachs Third-quarter results are scheduled to be reported before the opening bell on Tuesday.
Here’s what Wall Street expects:
- Earnings: $6.89 per share, according to LSEG
- Revenue: $11.8 billion, according to LSEG
- Trading revenues: fixed income of $2.91 billion, equities of $2.96 billion, per StreetAccount
- Bank income from investing: $1.62 billion, per StreetAccount
- Asset and wealth management: $3.58 billion, per StreetAccount
How Much Will Falling Interest Rates Help Goldman Sachs?
Over the past two years, the Federal Reserve’s tightening campaign has created a less than ideal environment for investment banks like Goldman.
With the Fed cutting rates, Goldman is positioning itself to see companies that have been waiting on the sidelines to acquire competitors or raise funds begin to take action.
Goldman’s asset management division is also positioned to benefit from rising asset values in the markets as interest rates fall.
Last week, rival JPMorgan Chase expectations were high with better-than-expected results from commercial and investment banking, factors that helped the bank improve earnings estimates.
Wells Fargo also exceeded expectations on Friday thanks to the investment banking division.
This story is developing. Check back later for updates.