Goldman Sachs (GS), a leading U.S. investment bank, handily beat the earnings expectations
of Wall Street due to strong bond trading.
The Wall Street firm said that its profit and revenue each got a boost from fixed-income trading
that generated $700 million U.S. more in revenue than expected during this year’s second
quarter.
Goldman Sachs reported Q2 earnings per share of $7.73 U.S. compared to $6.58 U.S. a share
that was expected, according to Refinitiv data. Revenue in the April through June period came
in at $11.86 billion U.S. versus $10.86 billion U.S.
However, the investment bank did report that its profit dropped 48% in the quarter to $2.79
billion U.S. However, even with the decline, Goldman Sachs still beat analyst expectations by
more than a dollar per share.
Goldman Sachs has a track record of outperforming other banks during periods of volatility. So
far, bank earnings have been mixed, with JPMorgan Chase (JPM) and Morgan Stanley (MS)
posting steep declines in revenue, while Citigroup (C) topped profit expectations.
Goldman Sachs’ stock gained 4% in premarket trading immediately following the release of its
Q2 numbers. Year to date, Goldman Sachs stock has declined 26% to $293.87 U.S. per share.
