Goldman Sachs Q2 Results Beat Estimates

Goldman Sachs Group, Inc. (GS) on Tuesday reported a 44 percent surge in profit for the second quarter from last year, reflecting higher revenues across all segments. The company noted that revenues were the highest second-quarter revenue in nine years. Both revenue and earnings per share for the quarter beat analysts’ expectations.

For the second quarter, net earnings applicable to common shareholders rose to $2.35 billion or $5.98 per share, from $1.63 billion or $3.95 per share in the year-ago period.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $4.66 per share for the quarter. Analysts’ estimates typically exclude special items.

Net revenues for the quarter rose 19 percent to $9.40 billion from $7.89 billion in the same period last year and were the highest second-quarter revenue in nine years. Analysts were looking for revenues of $8.74 billion.

In the quarter, net revenues in Investment Banking grew 18 percent to $2.05 billion, with 7 percent increase in Financial Advisory revenues and 27 percent growth in underwriting revenues.

Net revenues in Institutional Client Services rose 17 percent to $3.57 billion, reflecting mainly a 45 percent surge in revenues in Fixed Income, Currency and Commodities Client Execution.

During the quarter, FICC Client Execution operated in an environment characterized by higher client activity and improved market-making conditions, compared with a challenging year-ago quarter. However, market-making conditions were generally less favorable compared with the preceding first quarter.

Net revenues in Investing & Lending increased 23 percent to $1.94 billion, reflecting a 9 percent growth in equity securities revenues and a 67 percent surge in net revenues in debt securities and loans.

Investment Management revenues rose 20 percent from last year to $1.84 billion, primarily due to significantly higher incentive fees.

On July 16, 2018, Goldman Sachs’ board of directors declared a dividend of $0.80 per common share to be paid on September 27, 2018 to common shareholders of record on August 30, 2018.

by RTTNews Staff Writer

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