Goldman Sachs Beats Estimates On Top And Bottom Line

Goldman Sachs TradingA Goldman trader works in the company’s booth on the floor of the New York Stock Exchange.

Photo: Chris Hondros/Getty Images

UPDATE (8:00 a.m.):Investment banking giant Goldman Sachs reported better-than-expected quarterly results this morning, even as both sales and net income fell from the year ago period.

The company reported earnings per share of $1.78 on sales of $6.63 billion, ahead of forecasts for $1.18 on top line results of $6.25 billion.

The firm was boosted by its fixed income, trading and currency business, which saw revenues improve 37 per cent from June 2011 to $3.89 billion. 

However, equity sales fell more than 12 per cent on weakness in the derivative market.

“During the second quarter, market conditions deteriorated and activity levels for both corporate and investing clients were lower given continued instability in Europe and concerns about global growth,” Goldman Chief Lloyd Blankfein said.

Shares are up more than two per cent in pre-market trade. 

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ORIGINAL (7:12 a.m.):

Goldman Sachs is set to report second quarter results within the next half hour, with analysts looking for the investment banking giant to report earnings per share of $1.18 a share.

Revenue is projected to fall more than 30 per cent to $6.25 billion from the year ago period.

Weighing on results will likely be the firm’s fixed income trading group — which have been sluggish at early reporters like Citigroup.

“We see core fixed income trading revenues falling sharply against a strong 1Q (down 45% q/q), driven by a challenging trading environment in both Rates and Credit,” Keith Horowitz of Citi says about the industry’s largest banks. “Our softer forecast is driven by weak Equity Derivatives, and trading performance, partly offset by a seasonally better performance in Prime Brokerage.”

Goldman will release earnings at 7:30 a.m.

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