Financial report forecast | Investment banking business recovery is key DRIVE Goldman Sachs Group, Inc. (GS.US) Q3 performance may exceed expectations again

Goldman Sachs Group, Inc. (GS.US) will announce its third-quarter financial report before the US stock market opens on Tuesday. Analysts expect that Goldman Sachs Group, Inc.'s third-quarter revenue will increase by 11.9% year-on-year to $14.21 billion, higher than the 7.5% increase in the same period last year; the expected adjusted earnings per share is $10.57. Over the past two years, Goldman Sachs Group, Inc. has exceeded analysts' revenue expectations in each quarter, with an average outperformance of 6.6%. The new round of US stock market earnings season will kick off this week, with the six major US banks including JPMorgan Chase (JPM.US), Goldman Sachs Group, Inc., Morgan Stanley (MS.US), Bank of America Corp (BAC.US), Citigroup (C.US), and Wells Fargo & Company (WFC.US) taking the lead. The market currently expects that due to the strong recovery in the investment banking business, along with the resilience of the US economy keeping borrowers in good condition and supporting the consumer and commercial loan sectors, the performance of these six major banks in the third quarter will be strong. At the same time, investors will closely watch the economic outlook of these banks, as well as expectations for the investment banking and trading businesses. Goldman Sachs Group, Inc. significantly outperformed market expectations in the second quarter. The bank's second-quarter revenue increased by 14.5% year-on-year to $14.58 billion, surpassing analyst expectations by 7.3%. Goldman Sachs Group, Inc.'s second-quarter stock trading revenue reached $4.3 billion, exceeding analyst expectations by about $600 million. This impressive performance also raised the bank's overall profit to $3.7 billion (or $10.91 per share) in the second quarter, up 22% from the same period last year's $3.04 billion ($8.62 per share), outperforming market expectations. Some peers of Goldman Sachs Group, Inc. have already announced their third-quarter performance. Jefferies Financial Group Inc.'s third-quarter revenue increased by 21.6% year-on-year, exceeding market expectations by 8.4%; FactSet's third-quarter revenue increased by 6.2% year-on-year, surpassing market expectations by 0.6%.