Goldman Beats on Q4 Earnings

Goldman Sachs Group Inc (NYSE: GS) advanced after posting fourth-quarter profit and revenue that exceeded analysts’ expectations on strength in the firm’s investment banking and investing and lending divisions.

The New York-based bank generated $6.04 per share in profit for the fourth quarter of 2018, versus the $4.45 estimate. Revenue of $8.08 billion also beat analyst’s estimate of $7.55 billion.

The bank posted $2.04 billion in revenue in its investment banking division, better than then $1.88 billion estimate, fueled by a 56% surge in advisory revenue to $1.20 billion.

The lion’s share of Goldman’s revenue beat appeared to come from the bank’s investing and lending division, which produced $1.91 billion in revenue, more than $500 million in excess of the $1.35-billion estimate.

The bank cited "significantly higher net interest income" from a year earlier in that business.

Trading revenue from equities registered at $1.64 billion, while fixed income numbered $992 million. Investing banking showed results of $1.89 billion

Goldman Sachs CEO David Solomon, who took over from Lloyd Blankfein on October 1, is expected to address analysts on an earnings call for the first time Wednesday.

Very likely, Solomon will be touching on the fact that Goldman shares dropped 34% last year, the worst performance among the six biggest banks.

Shares climbed this morning by $9.35, or 5.2%, to $189.30