Earnings Preview: Goldman Sachs may be poised for strong Q3 results

Goldman Sachs (GS) is scheduled to report Q3 results on Tuesday, October 16 before the market opens with a conference call scheduled for 9:30 am ET. The consensus estimates are $2.12 for EPS and $7.30B for revenue, according to First Call. Goldman Sachs’ investors may be more upbeat about the outlook for the bank’s Q3 results after both JPMorgan (JPM) and Citigroup (C) reported stronger than expected Q3 results. Citigroup’s investment banking revenue rose 8% compared with Q2 and 26% year-over-year, and its revenue from equity markets surged 76% year-over-year, although it fell 7% versus Q2. JPMorgan said all of its businesses performed well. Meanwhile, International Strategy & Investment Group, a research firm, predicted that Goldman would report Q3 EPS of $2.70, beating expectations by a large amount, according to a Bloomberg report from October 10. Goldman’s results will be boosted by its own investments as well as revenue from underwriting and trading debt, the firm predicted. Europe may be less of a headwind than expected for Goldman, as CEO Lloyd Blankfein told CNBC on October 12 that Europe "looks much better" than it did just six months ago.