Goldman Sachs Tops Estimates With Lower Earnings

by Christopher Freeburn | July 17, 2012 12:05 pm

Goldman Sachs Tops Estimates With Lower Earnings

Investment powerhouse Goldman Sachs (NYSE:GS[1]) reported on Tuesday[2] that its second-quarter net income fell 11% to $962 million, compared to the same time last year.

Revenue declined 9% to $6.63 billion from last year. EPS for the quarter was $1.78. Those numbers beat Wall Street, which had expected EPS of $1.16 on revenue of $6.3 billion, CNNMoney noted.

Shares of Goldman Sachs rose fractionally in Tuesday trading.

CEO Lloyd Blankfein noted that worries over a slowing worldwide economy and, in particular, Europe’s ongoing economic woes, had contributed to lower investment activity.

The firm recorded expenses for the quarter down 23% from the prior year to $5.2 billion.

Salaries and bonuses also were trimmed by 9% to $2.92 billion, partly due to staff reductions of 9% from 2011. Average compensation per employee dipped from $237,000 during the first half of last year to $226,000 during the first half of 2012.

JPMorgan Chase (NYSE:JPM[3]) and Citigroup (NYSE:C[4]) reported earnings that topped analysts expectations[5] over the last week, while Wells Fargo (NYSE:WFC[6]) reported quarterly results in line with expectations[7].

Endnotes:
  1. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  2. reported on Tuesday: http://money.cnn.com/2012/07/17/investing/goldman-sachs-earnings/
  3. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  4. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  5. that topped analysts expectations: http://investorplace.com/2012/07/jpmorgan-profit-tops-forecasts-despite-trading-losses/
  6. WFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=WFC
  7. in line with expectations: http://investorplace.com/2012/07/wells-fargo-wfc-profit-shows-housing-on-the-mend/

Source URL: http://investorplace.com/2012/07/goldman-sachs-tops-estimates-with-lower-earnings/
Short URL: http://invstplc.com/1fCljyZ