U.S. investment bank Goldman Sachs (GS) missed Wall Street expectations for its second-quarter profit, sending its stock lower as a result.
Goldman Sachs announced earnings per share of $3.08 U.S., which was below the $3.18 U.S. expected among analysts who cover the bank.
Revenue for Q2 of this year amounted to $10.9 billion U.S., which was slightly better than the $10.84 billion forecast on Wall Street.
Goldman Sachs continues to struggle with a global slump in investment banking and trading activity as the number of mergers and acquisitions (M&A) and initial public offerings (IPOs) remains anemic.
Goldman’s latest earnings were also hurt by a write-down of its commercial real estate assets and an impairment charge related to its planned sale of fintech unit GreenSky.
Unlike other investment banks, Goldman Sachs gets most of its revenue from deals and trading.
Executives at Goldman Sachs had previously warned that its trading revenue was likely to decline 25% in Q2.
Goldman Sachs is the first of the major U.S. banks to miss on its Q2 earnings print. JPMorgan Chase (JPM), Bank of America (BAC), Morgan Stanley (MS), and others, all exceeded expectations for their Q2 earnings.
Goldman Sachs’ stock has declined 3% this year to trade at $337.27 U.S. per share. The stock was trending lower in pre-market trading after the Q2 earnings announcement.
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