Goldman Sachs Group Inc. Earnings Cheat Sheet: Misses Estimates

S&P 500 (NYSE:SPY) component Goldman Sachs Group Inc. (NYSE:GS) reported its results for the second quarter. Goldman Sachs Group, Inc. is a global investment banking and securities firm that specializes in investment banking, trading and principal investments, asset management and securities services.

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Goldman Sachs Group Earnings Cheat Sheet for the Second Quarter

Results: 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: Revenue fell 39% to $7.28 billion from the year earlier.

Actual vs. Wall St. Expectations: GS fell short of the mean analyst estimate of $2.29 per share.

Quoting Management: “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.”

Key Stats:

Last quarter’s profit increase breaks a streak of four consecutive quarters of year-over-year profit drops. In the first quarter, net income fell 20.9% from the year earlier, while the figure fell 51.8% in the fourth quarter of the last fiscal year, 40.5% in the third quarter of the last fiscal year and 82.2% in the second quarter of the last fiscal year.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 77 cents, and in the fourth quarter of the last fiscal year, it was ahead by one cent.

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).

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(Source: Xignite Financials)