Goldman Sachs beats estimates as JPMorgan Chase misses on revenue and profit
JPMorgan Chase CEO Jamie Dimon says the bank is deploying capital at good returns rather than buying back stock, even as results fell short of estimates.
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Goldman Sachs reported third-quarter revenue of $18.68 billion, up from $15.18 billion a year earlier and ahead of the $17.52 billion Wall Street had forecast. The bank declared a $5.00 dividend.
JPMorgan Chase's quarter went the other way. Revenue came in at $50.91 billion, short of the $51.65 billion forecast, with earnings per share of $5.75, also below estimates.
Dimon said JPMorgan's buyback pace has slowed because the bank is putting capital to work at returns it considers attractive. JPMorgan and Goldman Sachs together kept $1.3 billion of a $5 billion loan arranged for Volta Infrastructure, which is financing a data center in Norway built around roughly 36,000 Nvidia graphics processors.
Goldman's results reverse a valuation reset that had pushed its shares negative for the year after Jefferies cut its price target on the stock earlier this month, cutting against a broader caution that had built up around the New York Fed's review of private credit and a string of target cuts across the sector. JPMorgan's miss complicates Dimon's description of slower buybacks as capital discipline rather than a drag on returns. With earnings season just beginning, the split outcome raises the stakes for how Morgan Stanley and other large banks report in the coming days.