Goldman Beats EPS On Top Line Strength, Cost Cuts
Goldman Sachs (NYSE: GS) beat earnings expectations for the second consecutive quarter with help from lower costs and better-than-expected revenue across business sectors.
Shares rose 2 percent to $99.61 in pre-market trading.
The company reported earnings ex-items of $1.78 a share, down from $1.85 a year earlier but surpassing analyst expectations of $1.16 a share.
Operating expenses fell 8 percent from the same period a year earlier due to ongoing cost-cutting measures.
Revenue fell 9 percent to $6.6 billion but beat expectations of $6.3 billion.
Helping to drive the top-line was Goldman's FICC business – fixed income, currencies and commodities execution. Revenue was $2.2 billion, up 37 percent from a year earlier.
Investment banking revenue was $1.2 billion, down 17 percent from a year ago. However, the company finished first in the deals rankings among major banks.
Advisory revenue of $469 million was 26 percent lower than a year ago as there was less global M&A.
The company's investment management revenue rose 5 percent to $1.33 billion as the bank increased its assets under management.
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