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Goldman Sachs Zooms Past Estimates

Strong growth in trading revenue boosted the numbers.

Updated from 10:21 a.m. EDT

Benefiting from strong growth in trading revenue and more modest gains in investment banking,

Goldman Sachs

(GS) - Get Report

said Tuesday that its profit in the latest quarter surpassed Wall Street's estimates, rising 29%.

The New York-based financial firm said that its net earnings reached $824 million, or $1.62 a share, in the third quarter, up from $638 million, or $1.31 a share, in the comparable quarter of last year. Wall Street analysts surveyed by

First Call/Thomson Financial

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had predicted earnings of $1.51 a share in the quarter ending Aug. 25.

Goldman Sachs finished Tuesday regular trading up $1.38, or 1%, at $119.94.

Total revenue increased 32% to $4.5 billion, as revenue from investment banking -- the business of advising companies on mergers and acquisitions and underwriting stock offerings -- increased 15% to $1.3 billion. Revenue from trading and principal investments climbed a healthier 46% to $2.1 billion.

Henry M. Paulson Jr., chairman and chief executive of Goldman Sachs, highlighted in a statement his company's

decision earlier this month to acquire privately held clearing firm

Spear, Leeds & Kellogg

in a cash and stock transaction valued then at $6.5 billion.

"This combination extends our clearing, trading and market-making capabilities and significantly deepens our client base," Paulson said.