Goldman Sachs has outdone analysts’ expectations as the investment giant reported its revenues performing way better than expected, beating analysts’ expectations by a slide.
The company revealed its earnings on Tuesday, and one of the critical factors that helped the firm grow its earnings per share were its sales from equity trading, which helped much with the market volatility.
Revenue of $10.04 billion versus the expected value of $8.74 billion was revealed. On the other hand, the earnings per share were $6.95 compared to the expectation value of $5.58.
The bank also raised its quarterly dividend to about 80 cents a common share. Shares from equity trading increased by 38 percent to settle at $2.31 billion, as it beat the StreetAccount estimate of a whopping $1.92 billion.
However, while all indicators did report a rise, it was also revealed that one of the most crucial trading revenue numbers missed the analysts’ expectations.
The bank also reported that the currencies, commodities and fixed income trading revenues were off to $2.07 billion, which was lower than the $2.13 billion consensuses arrived from the analyst estimates.
One of the key reasons for that, the bank explains, was the lower net revenue mainly in the interest rate products and the mortgages. Overall, the figure rose by 23 percent from a year before.
There has been a substantial performance across the most critical indicators of the bank, and the earnings have been strong, said Lloyd Blankfein, the CEO of Goldman Sachs. Moreover, he also showed continued and persistent determination to serve their customers in the short and long run both.
However, according to various reports, it has also been revealed that Goldman Sachs is trying to change from its most crucial trading business to venture into more profitable lines.
One of the major indicators for the bank remained the investment-banking arm, which reported $2.14 billion in net revenues. Moreover, mergers and acquisitions continued the most prominent stake and outperformer for the firm.