The Goldman Sachs Group, Inc. (NYSE:GS) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of US$13b, some 8.0% above estimates, and statutory earnings per share (EPS) coming in at US$8.40, 21% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

After the latest results, the 15 analysts covering Goldman Sachs Group are now predicting revenues of US$54.6b in 2025. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 21% to US$41.98. In the lead-up to this report, the analysts had been modelling revenues of US$54.5b and earnings per share (EPS) of US$41.95 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$552. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Goldman Sachs Group at US$661 per share, while the most bearish prices it at US$450. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Goldman Sachs Group's rate of growth is expected to accelerate meaningfully, with the forecast 8.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Goldman Sachs Group is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$552, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Goldman Sachs Group going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Goldman Sachs Group that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.