Goldman Sachs Beats 1Q Expectations
Tuesday March 18, 8:45 am ET
By Joe Bel Bruno, AP Business Writer
Goldman Sachs 1st-Quarter Results Sail Past Wall Street Expectations
NEW YORK (AP) -- Goldman Sachs Group Inc., the world's largest investment bank, on Tuesday reported stronger asset management and commodities performance pushed first-quarter results well above Wall Street projections.
However, the investment house also showed its vulnerability to the global credit crisis. Goldman posted net losses on residential mortgages and securities of $1 billion, credit products produced another $1 billion loss, and investment banking returns were sluggish.
"Market conditions are clearly very difficult," Chairman and Chief Executive Lloyd Blankfein said in a statement.
Goldman reported first-quarter earnings of $1.47 billion after preferred dividends, or $3.23 per share, down from $3.2 billion, or $6.67 per share, last year. Revenue fell to $8.33 billion from $12.73 billion a year earlier.
Analysts polled by Thomson Financial on average expected earnings of $2.58 per share on $7.47 billion in revenue. Reflecting the uncertain nature of the times, the 18 analysts reporting earnings estimates had forecast anything from $1.95 to $3.40 per share in profits.
Shares of the company rose 6 percent to $160.05 in premarket trading from a $151.02 close Monday. |
