Goldman-Sachs (NYSE:GS): The home of the vampire squid reported its second quarter earnings today, and the street did not take kindly to the company’s latest financial news. Net income for Goldman Sachs Group Inc. rose to $1.09 billion ($1.85 per share) vs. $613 million (78 cents per share) in the same quarter a year earlier. This marks a rise of 77.3% from the year earlier quarter. Revenue fell 39% to $7.28 billion from the year earlier. The company fell short of the mean analyst estimate of $2.29 per share. During the second quarter, the operating environment was more difficult given global macro- economic concerns,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “In addition, certain of our businesses had disappointing results as we reduced our market risk in response to attempting to manage fluctuations in prices and market liquidity. Despite these challenges, we continued to address our clients’ needs through our strong global franchise and are well positioned to respond as economic conditions and sentiment improve.” GS stock ended the day down -0.65%.
Competitors to Watch: Morgan Stanley (NYSE:MS), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Citigroup Inc. (NYSE:C), UBS AG (NYSE:UBS), Deutsche Bank AG (NYSE:DB), Wells Fargo & Company (NYSE:WFC), Credit Suisse Group AG (NYSE:CS), and Piper Jaffray Companies (NYSE:PJC).
Wells Fargo (NYSE:WFC): The financial services provider reported its second quarter earnings today. Net income for Wells Fargo & Co. rose to $3.95 billion (70 cents per share) vs. $3.06 billion (55 cents per share) in the same quarter a year earlier. This marks a rise of 28.9% from the year earlier quarter. Revenues from non-interest income was $9.71 billion last quarter. The company beat the mean analyst estimate of 69 cents per share. WFC stock shot up 5.69% by closing time today.
“Our business fundamentals were strong with increased revenues, loans and deposits, lower operating costs, improved credit quality and higher capital levels,” said Chairman and CEO John Stumpf. “While the economic recovery continues to be slower than expected, there are signs that businesses are investing for growth, and we’re here to help them. We’re enjoying strong loyalty and market share growth as we continue to focus on helping our customers emerge from the economic downturn. We’re right on track with our integration, having converted 2,215 Wachovia stores to date, including most recently one of our largest East Coast states, Florida. We continue to be focused on building and managing our diversified company for the long-term benefit of our team members, customers, shareholders and communities and feel we are very well positioned to capture future growth opportunities.”
Competitors to Watch: Bank of America Corp. (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), U.S. Bancorp (NYSE:USB), PNC Financial Services (NYSE:PNC), SunTrust Banks, Inc. (NYSE:STI), KeyCorp (NYSE:KEY), Goldman Sachs Group, Inc. (NYSE:GS), Regions Financial Corp. (NYSE:RF), and Morgan Stanley (NYSE:MS).
Bank of America (NYSE:BAC): The Charlotte, NC based multinational bank reported its second quarter results this morning. BofA swung to a loss of $8.8 billion (90 cents per diluted share) in the quarter. The bank had net income of $3.12 billion or 27 cents per share in the year earlier quarter. The company beat the mean analyst estimate of a loss of 91 cents per share. BAC stock closed down -1.54%.
“Obviously, the solid performance in our underlying businesses continues to be clouded by the costs we are absorbing from our legacy mortgage issues,” said Bank of America Chief Executive Officer Brian Moynihan.” But it is clear that – from deposits to wealth management to investment banking – our customers and clients are choosing to do more with us every day. We intend to continue our efforts to put the mortgage uncertainty behind us, build capital through the strength of the franchise, and deliver the returns for shareholders that we owe them.”
Competitors to Watch: Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), U.S. Bancorp (NYSE:USB), Goldman Sachs Group, Inc. (NYSE:GS), Barclays PLC (NYSE:BCS), Morgan Stanley (NYSE:MS), PNC Financial Services (NYSE:PNC), KeyCorp (NYSE:KEY), and American Express Company (NYSE:AXP).