Goldman Sachs misses earnings on dip in trading revenue, shares slide
Main page News

Goldman Sachs (NYSE: GS) shares have plunged after the investment bank missed its earnings expectations after posting a dip in trading revenue.

Goldman posted earnings per share of $5.15, below the $5.31 per share analysts had forecast.

The firm's trading revenue dipped two percent to $3.4 billion in the first quarter. A result Goldman put down to weak commodity prices, weakness in currencies and credit revenue, and lower commissions and fees from equities trading.

Space mining not as unrealistic as you think: Goldman Sachs

The result was unusual because Goldman's Wall Street peers such as JP Morgan (NYSE: JPM) and Bank of America (NYSE: BAC) were faced with similar conditions but all managed to grow their trading revenues.

Goldman's Deputy Chief Financial Officer R. Martin Chavez told investors on a conference call that markets' strong performances had decreased volatility and resulted in less trading.

At 10.40am in New York Goldman's stock was down more than 4.2 percent to $216.67.

Goldman Sachs suggests Apple explore content and launch "Apple Prime"

Despite the dip in trading Goldman's first quarter profit surged 80 percent to $2.2 billion from $1.2 billion in the first quarter of 2016.

Revenue was up 27 percent to $8 billion from $6.3 billion.

Forbes

Please describe the error
Close