Goldman Sachs (GS) Earnings Preview: What To Expect In Tuesday's Quarterly Release

Goldman Sachs Group, Inc. (NYSE: GS) surprised investors with quarterly earnings well above expectations last quarter, as well as for the fourth quarter last year. For the third quarter of 2016, which the investment bank will release Tuesday morning, analysts forecast a small rise in earnings per share (EPS), to $3.86 from $3.72.

The second quarter earnings, on revenues of $7.93 billion, sharply increased from the first quarter of 2016, with an EPS of $2.68 on revenues of $6.34 billion.

Still, the company’s price of shares fell to $168.58 and continued to decline on Monday after reaching $172.77 on Friday, Oct. 14.

Analysts at Zacks Investment Research predicted that Goldman would not beat its estimates this time around, due to “a challenging environment, low interest rates and global growth concerns.”

In its previous earnings report, Goldman Chairman and CEO Lloyd Blankfein similarly acknowledged concern for global financial market instability.

“Despite the uncertainty created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently,” Blankfein said in the second quarter earnings press release.

And while Goldman saw growth between the first and second quarters of 2016, comparisons to the second quarter of 2015 were less sunny. The largest declines stemmed from equities, a market still reeling from instability related to the U.K.’s aforementioned decision to leave the European Union, the U.S. presidential election and the regulatory crises and rumored collapse at Deutsche Bank.

But like other large U.S. financial institutions, Goldman saw a rise in its fixed income, currency and commodity securities, such as bonds and mortgages, from both the previous quarter and the second quarter of 2015. If the megabanks’ third quarter earnings are any indication, the trend should continue.

Following weak first-quarter earnings in 2015, Goldman, once considered the banking destination for enemies of Bernie Sanders and the Occupy movement, opened its doors last spring to small savers and depositors, with offerings of online savings accounts bearing minimums of just $1.

Goldman made headlines more recently when it banned employees from donating to Republican candidate Donald Trump in September. Last week, hacking group WikiLeaks released transcripts of Democratic presidential candidate Hillary Clinton’s amicable speeches with the investment bank, a sign that as her poll numbers rise, Goldman’s performance might as well.