Goldman Sachs' profits miss forecasts as trading struggled

Goldman trading floor

Image source Goldman Sachs

Net earnings applicable to common shareholders came in at $2.16bn (£1.7bn), up 80 per cent from $1.2bn in the first quarter of a year ago.

Net earnings, meanwhile, came in at $2.26bn for the first three months of the year.

The target price for The Goldman Sachs Group, Inc. Year-to-date, GS had declined -5.26% prior to today's report, versus a +5.40% rise in the benchmark S&P 500 index during the same period.

The firm maintained strong capital ratios and liquidity. During the same quarter previous year, the business posted $4.68 earnings per share. Shares of the bank, whose large trading desk often does the heavy lifting, are in a flat base. Underwriting revenue rose 37 percent from a year earlier. This contrasted with Goldman's rivals, which have reported booming trading revenues, especially in fixed income.

The bank's revenue rose from $6.34 billion to $8.03 billion, during the same period, posting a 26.6 percent increase. Bank of America also reported earnings Tuesday, beating or meeting Wall Street expectations on nearly every single metric.

The operating environment had been "characterised by political uncertainty, low levels of volatility and low client activity levels", the bank said in its earnings statement. The business had revenue of $8.17 billion for the quarter, compared to analyst estimates of $7.80 billion. The legal version of this news story can be viewed at https://transcriptdaily.com/2017/04/18/goldman-sachs-group-inc-gs-pt-set-at-250-00-by-royal-bank-of-canada.html. In last year's first quarter, the firm reported $2.68 per share in earnings and $6.34 billion in revenue. Institutional investors and hedge funds own 72.77% of the company's stock. Liquidity products decreased $35 billion.

Total operating expenses rose 15.2 percent to $5.49 billion.

Results: EPS of $5.15 on revenue of $8.03 billion.

Results: EPS of 41 cents on revenue of $22.2 billion.

The Standardized Common Equity Tier 1 ratio fell to 14.2 percent in the first quarter, down from 14.5 percent in the fourth quarter of 2016. Similarly, revenues from Equities dipped six percent due to weak revenues from commissions and fees to reflect lower volumes. As of December 2016, it had offices in over 30 countries. Finally, Atria Investments LLC increased its position in shares of Goldman Sachs Group by 38.7% in the first quarter. Shareholders of record on Thursday, June 1st will be paid a $0.75 dividend.

According to Finviz reported data, The SMA20 of the stock is at 1.47 percent, SMA50 is -0.25 percent, while SMA200 is 5.43 percent. On April 17, 2017, the Board authorized the repurchase of an additional 50.0 million shares of common stock pursuant to the firm's existing share repurchase program. Analyst's mean target price for GS is $253.00 while analysts mean recommendation is 2.60. (GS) has reported a 98.68 percent jump in profit for the quarter ended March 31, 2017.

Ultimas noticias