This just in… Goldman Sachs (GS) has done a surprise earnings pre-announcement. Q1 EPS came in at $3.39 vs. an estimate of $1.59. Revenue of $9.4 billion handily beat estimates of $7.1 billion.
Is this why financials rallied so hard in the final hour of the day?
The company says it will use a capital raise to repay TARP. (See more details here)
While the top line numbers are surely impressive, much of the lift came from the Fixed Income, Currency and Commodities business, which was its best quarter ever.
But other than that, lines such as asset management and advisory were well lower than last year and last quarter.
Some highlights from the release:
- Fixed Income, Currency and Commodities (FICC) generated record quarterly net revenues of $6.56 billion, 34% higher than its previous record, reflecting strength across most businesses, including record results in interest rate products and commodities.
- Net revenues in Investment Banking were $823 million, 30% lower than the first quarter of 2008 and 20% lower than the fourth quarter of 2008. Net revenues in Financial Advisory were $527 million, 21% lower than the first quarter of 2008, reflecting lower levels of deal activity. Net revenues in the firm’s Underwriting business were $296 million, 42% lower than the first quarter of 2008.
- Net revenues in Asset Management and Securities Services were $1.45 billion, 29% lower than the first quarter of 2008 and 17% lower than the fourth quarter of 2008.
Despite the beat, the stock is off a tad after hours, though still up for the day.