- Goldman Sachs quickly gave up early gains on Tuesday, even after it reported solid second-quarter earnings and named David Solomon as its new CEO.
- The broader stock market was lower.
- Goldman’s investment-banking unit is flush with deals to come.
- Watch Goldman Sachs trade in real time here.
Earnings per share came in at $US5.98, far better than Wall Street’s expected $US4.66. Revenue was $US9.4 billion, beating estimates of $US8.74 billion. Management also noted that there is a transaction backlog in investment banking, much more so than in the previous quarter.
The bank saw encouraging results in several businesses, including asset management, but “better yet is the health of the banking pipeline and the early-in-the-year drop in the comp accrual rate,” Credit Suisse analyst Susan Katzke wrote in a note out to clients.
Goldman also named its new CEO, David Solomon. Lloyd Blankfein, the incumbent, will step down September 30, and Solomon will become CEO and a board member October 1.
“David is the right person to lead Goldman Sachs,” Blankfein said in a statement. “He has demonstrated a proven ability to build and grow businesses, identified creative ways to enhance our culture and has put clients at the center of our strategy.”
Goldman Sachs is down 10% this year.
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