Goldman Sachs beats Street with record earnings
Goldman Sachs Group posted record earnings, beating estimates, as revenue from trading and stock underwriting reached all-time highs less than a year after the firm took $10 billion in US rescue funds.
By Bloomberg |
NEW YORK: Goldman Sachs Group posted record earnings, beating estimates, as revenue from trading and stock underwriting reached all-time highs less than a year after the firm took $10 billion in US rescue funds. Second-quarter net income was $3.44 billion, or $4.93 a share, the New York-based bank said on Tuesday in a statement.
That surpassed the $3.65 per-share average estimate of 22 analysts surveyed by Bloomberg and compared with $2.09 billion, or $4.58 per share, in last year���s second quarter.
Chief executive officer Lloyd Blankfein made Goldman Sachs the highest-paying Wall Street firm in history before last year���s credit freeze led him to convert to a bank, accept government funds and report the first quarterly loss as a public company. This year Goldman Sachs has issued new stock, repaid the US Treasury and reaped fees from selling stocks and bonds.
���Goldman���s got a sweet spot in here, they were the go-to players,��� said Peter Sorrentino, a senior portfolio manager at Huntington Asset Advisors in Cincinnati, which oversees $13.8 billion including Goldman shares, before earnings were released.
���For the time being, they���ve got kind of an open playing field all to themselves.��� Goldman Sachs, the fifth-biggest US bank by assets, climbed 77% in New York Stock Exchange trading this year to close on Monday at $149.44. That���s almost triple the low of $52 on November 20.
The difference between the yield on Goldman Sachs���s bonds and US Treasuries, known as the spread, has narrowed this year, indicating investors have regained comfort in lending to the company. The spread on $3.2 billion of 5.95% senior unsecured notes maturing in 2018 was 268 basis points on Tuesday, compared with 472 basis points on March 31. A basis point is one-hundredth of a percentage point.
That surpassed the $3.65 per-share average estimate of 22 analysts surveyed by Bloomberg and compared with $2.09 billion, or $4.58 per share, in last year���s second quarter.
Chief executive officer Lloyd Blankfein made Goldman Sachs the highest-paying Wall Street firm in history before last year���s credit freeze led him to convert to a bank, accept government funds and report the first quarterly loss as a public company. This year Goldman Sachs has issued new stock, repaid the US Treasury and reaped fees from selling stocks and bonds.
���Goldman���s got a sweet spot in here, they were the go-to players,��� said Peter Sorrentino, a senior portfolio manager at Huntington Asset Advisors in Cincinnati, which oversees $13.8 billion including Goldman shares, before earnings were released.
���For the time being, they���ve got kind of an open playing field all to themselves.��� Goldman Sachs, the fifth-biggest US bank by assets, climbed 77% in New York Stock Exchange trading this year to close on Monday at $149.44. That���s almost triple the low of $52 on November 20.
The difference between the yield on Goldman Sachs���s bonds and US Treasuries, known as the spread, has narrowed this year, indicating investors have regained comfort in lending to the company. The spread on $3.2 billion of 5.95% senior unsecured notes maturing in 2018 was 268 basis points on Tuesday, compared with 472 basis points on March 31. A basis point is one-hundredth of a percentage point.
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