The Goldman Sachs Group Inc. (NYSE: GS) is out with earnings that look significantly better than estimates on the headlines. The investment banking giant is also boosting its dividend. Earnings came in at $2.85 per share on revenue of $8.35 billion. This compares to a year ago’s report of -$0.84 EPS and $3.59 billion a year ago, and to the Thomson Reuters estimate of $2.12 EPS and $7.3 billion in revenue.
Annualized return on equity was 8.6% for the third quarter, and up 8.8% year-to-date. Goldman Sachs said that its core excess liquidity was $170 billion, its Tier 1 capital ratio under Basel 1 was 15.0%, and its Tier 1 common ratio under Basel 1 was 13.1%.
Book value per common share rose to $140.58 and the bank’s tangible book value per common share rose to $129.69, coming to gains of about 3% each. The investment banking giant also raised its dividend to $0.50 per share per quarter from $0.46 per share per quarter. Its new dividend yield is 1.6%.
Goldman Sachs shares closed at $124.50 on Monday and the 52-week trading range is $86.90 to $128.72. Its market cap is about $61.8 billion. What is interesting is that the initial reaction is slightly lower by about 0.7%.
JON C. OGG