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Goldman Sachs Trounces Expectations
Posted Jul 14, 2009 08:37am EDT by Chris Nichols in BankingMany analysts and traders were expecting a big quarter from Goldman Sachs, and they got exactly that.
The New York-based bank said Tuesday that it earned $3.4 billion, or $4.93 a share, in the second quarter, up from $4.58 a share a year earlier. That easily exceeded Wall Street's expectation of $3.54. Excluding TARP expenses, the company would have had a profit of $5.71 a share.
Revenue of just under $13.8 billion bolted past the consensus forecast of around $10.7 billion.
Goldman's equity underwriting had record quarterly net revenue of $736 million, topping the previous best that had been set in the second quarter of 2000. Fixed income, currency and commodities generated net revenue of $6.80 billion, another record.
Net revenue in investment banking was $1.44 billion, down 15% year over year but up 75% from the first quarter.
"While markets remain fragile and we recognize the challenges the broader economy faces, our second quarter results reflected the combination of improving financial market conditions and a deep and diverse client franchise," said Lloyd Blankfein, Goldman's chairman and CEO, in a press release. "Our role as an intermediary focused on making markets for buyers and sellers helped drive our performance. We were also active as an underwriter of many significant debt and equity offerings for clients."
Goldman is the first of the largest U.S. banks to report its numbers. Later this week, results are due from JPMorgan Chase, Citigroup and Bank of America. The financial firms, and their quarterly results, were key to the stock market's rally off its March lows, and investors will be hoping for a repeat performance as the summer progresses.
Shares of Goldman were trading slightly higher in the premarket, up 46 cents at $149.90.
29 Comments
Polski - Tuesday July 14, 2009 12:54PM EDT
What about the other 14999/15000 listings on the Exchange, don't their fundamentals affect the Market. Actually, No! None of the fundamentals affect the Market, it is World Macroeconomics, of what is happening in SriLanka, more, Bubba! The rest is "Historic" use of an Archaic system, for which the Pundits can no lionger justify. Earnings are as good as the next check to a CEO? See: Sep 08 data.
Yahoo! Finance User - Tuesday July 14, 2009 01:06PM EDT
I hope someone at Goldman Sucks reads these messages. There's not a single message supporting the crooks. The world now knows how intricately they are linked with the gubt and how they work the levers behind the scenes to control the price of gold, oil, commodities and currencies. It's not a coincidence that they are too big to fail. But like every bad sci-fi experiment gone wrong, this will end badly for the US.
Zakaria - Tuesday July 14, 2009 02:43PM EDT
Citi is up to a big surprise too. Rendez vous: Friday morning. Share price not less than 3.80$!
Zakaria - Tuesday July 14, 2009 02:43PM EDT
Citi is up to a big surprise too. Rendez vous: Friday morning. Share price not less than 3.80$!
James - Tuesday July 14, 2009 04:15PM EDT
A 2% return on our money. Will that be disributed shortly? I need bus fare.
Yahoo! Finance User - Tuesday July 14, 2009 06:22PM EDT
Is this proving how stupid other bank's executives are, or another BS announcement for bubbling GS stock price again? Hope that people are not lured again. I think BAC and C need to find out the way from GS for increasing their stock values by 100 times. That would push the economy right away out of recession while people can continue to stay home doing nothing.
Warren - Wednesday July 15, 2009 12:29AM EDT
You should know by now that Obama is out to destroy our country. He is a bitter man who hates the United States.
kostadin - Wednesday July 15, 2009 10:18AM EDT
actually after a crises, the first to get some fresh air and to repair are the lenders, the banks, they had diminished activity ..in the times of crises, now when they again start hedging and when they have the liquidity of billions of dollars, they made fast money, lets see if lending to the real economy ... will have some results, and what happens if these retail sector and the american and also the global consumer just doeesnt respond and we just see that at the end of year .. real economy shrinks again, and what if just commodities go up .. in october and a quater after that they plummet again ? this crisees is not like the others and we ll see consumer loans next
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Jeffrey - Tuesday July 14, 2009 12:37PM EDT
Well....we can continually bash and / or blame them...or join them. I've learned over these past few months the latter seems to be the best option when considering this market. I was fortunate today...sold my GS at $150 a share....after having bought last week at $136. You had to see this one coming!!!!!