Before-the-Bell Earnings Wrap: GS, VZ, BX

NEW YORK (TheStreet) -- Goldman Sachs (GS), Verizon Communications (VZ) and Blackstone Group (BX) were a mixed bag, after reporting earnings before market open Thursday.

Though earnings beat expectations, Goldman Sachs shares were trading lower in pre-market trading after it reported a 20% drop in revenue to $6.72 billion. For the period ended September 30, the fifth-largest bank in the U.S. posted earnings per share of $2.88 a share compared to $2.85 a share in the year-ago quarter.

"The third quarter's results reflected a period of slow client activity," said CEO Lloyd C. Blankfein in a statement.

Shares were lower in early trading, off 3.4% to $157.00.


Verizon Communications reported better-than-expected earnings of $2.2 billion or 77 cents a share on revenue of $30.28 billion. Analysts had expected earnings per share of 74 cents and $30.16 billion in revenue.

"These strong third-quarter results reflect Verizon's long-term investment in reliable, high-quality networks to deliver value to customers," CEO Lowell McAdam said in a statement. "Our unwavering focus on wireless, FiOS and strategic enterprise services has produced consistent performance, and we've delivered double-digit earnings growth in six of the past seven quarters"

Shares for the telecommunications company were up 2.7% to $48.54 shortly after market opened.

TheStreet Ratings team rates Verizon Communications Inc as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate Verizon Communications Inc (VZ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."


Blackstone Group saw earnings gain 3% in its third quarter as economic net income (ENI), its measure of profitability on the market value of its portfolio, rose to $640.2 million from $621.8 million in the year-ago quarter. The alternative asset manager reported record portfolio value of $248 billion, a 21% year-on-year increase.

"Blackstone attracted $12 billion of organic capital informs and $53 billion in total inflows over the past year," CEO Stephen A. Schwarzman explained in a statement. "We are actively deploying this capital, as our global scale and diversification allow us to source investment opportunities around the world."

Despite the positive earnings report, shares dropped 0.7% to $26.83 just after the market opened.

TheStreet Ratings team rates BLACKSTONE GROUP LP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BLACKSTONE GROUP LP (BX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Written by Keris Alison Lahiff.

If you liked this article you might like

Is the Market's Explosive Rally Off the Lows Fake?

Is the Market's Explosive Rally Off the Lows Fake?

Blackstone Group's Byron Wien: Investors Need Complacency Beaten Out of Them

Blackstone Group's Byron Wien: Investors Need Complacency Beaten Out of Them

9 Banking Bets, From Main Street to Wall Street

9 Banking Bets, From Main Street to Wall Street

Dow Tumbles 362 Points; S&P 500 and Nasdaq Also Finish Lower

Dow Tumbles 362 Points; S&P 500 and Nasdaq Also Finish Lower

Dow Selloff, Thomson Reuters, Jamie Dimon, Exxon, Waymo - 5 Things You Must Know

Dow Selloff, Thomson Reuters, Jamie Dimon, Exxon, Waymo - 5 Things You Must Know