Market Overview

Goldman Sachs Falls After Q1 Miss


Shares of Goldman Sachs Group Inc (NYSE: GS) were trading lower by around 3 percent early Tuesday morning after the company reported its first quarter results.

Goldman Sachs said it earned $5.15 per share in the quarter on revenue of $8.03 billion; Analysts were expecting the company to earn $5.31 per share on revenue of $8.45 billion.

Net earnings for the quarter rose 99 percent from a year ago to $2.255 billion, while book value per common share rose 1.4 percent to $185.98.

The company also raised its quarterly dividend from $0.65 per share to $0.75 per share and authorized the repurchase of an additional 50 million shares of its stock.

"The operating environment was mixed, with client activity challenged in certain market-making businesses and a more attractive backdrop for underwriting in our investment banking franchise," said Lloyd Blankfein, Chairman and Chief Executive Officer. "As the economy improves, we are well positioned to not only meet our clients' diverse needs, but also to generate operating leverage for our shareholders."

Here is a summary of how each business segment performed in the quarter on a year-over-year basis.

Investment Banking

  • Net revenue rose 16 percent to 1.7 billion.
  • Completed M&A activity declined although the company saw significantly higher underwriting activity in both equity and debt.

Institutional Client Services

  • Net revenue fell 2 percent to $3.36 billion.
  • The company saw significantly higher net revenues in mortgages, higher net revenues in interest rate products.
  • However, this was offset by significantly lower net revenues in commodities and currencies and lower net revenues in credit products.

Investing & Lending

  • Net revenue was significantly higher on a year-over-year basis to $1.46 billion.
  • The company cited a significant increase in net gains from investments in private and public equities.

Investment Management

  • Net revenues rose 12 percent to $1.50 billion.
  • The company cited higher incentive fees and higher management and other fees.
  • The higher fees also reflected higher average assets under supervision.
  • Total assets under supervision totaled $1.37 trillion, long-term assets under supervision rose $29 billion, and net inflows of $5 billion.

See Also:

Bank Of America Inches Higher On Q1 Beat

Earnings Scheduled For April 18, 2017


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Posted-In: bank earnings banks Goldman Sachs Lloyd BlankfeinEarnings News Dividends