Goldman Sachs Group Inc. Earnings: Revenues and Net Income Fall

S&P 500 (NYSE:SPY) component Goldman Sachs Group Inc. (NYSE:GS) posted a decrease in profit as revenue declined. Goldman Sachs 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 First Quarter

Results: Net income for the financial/investment brokers fell to $2.11 billion ($3.92 per share) vs. $2.73 billion ($1.56 per share) a year earlier. This is a decline of 22.9% from the year-earlier quarter.

Revenue: Fell 16.4% to $9.95 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Goldman Sachs Group Inc. beat the mean analyst estimate of $3.46 per share. It beat the average revenue estimate of $9.45 billion.

Quoting Management: “We are pleased with the firm’s solid performance for the quarter,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “Stronger global markets, together with the firm’s deep and broad client franchise, drove improved results across most of our businesses. Because client activity remains relatively low in certain areas, especially in parts of Investment Banking, we believe that our mix of businesses gives the firm significant room for revenue growth as economic and market conditions continue to improve.”

Key Stats:

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of $1.84 versus a mean estimate of net income of $1.46 per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is $2.67 per share, down from $2.84 ninety days ago. For the fiscal year, the average estimate has moved up from $11.25 a share to $11.86 over the last sixty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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