Goldman Sachs' (NYSE:GS) quarterly earnings plunged 72 percent, saying in the current regulatory and economic environment there were less opportunities to generate revenue.
Even with the poor performance, it was better than analysts had been looking for, although cautious comments from Goldman about future profits balanced the better-than-expected performance.
Revenue in the quarter dropped by 7 percent, as a major source of income - customer trading - fell 22 percent.
The bank earnings were $908 million, or $1.56 a share. Analysts' average projection was 82 cents a share. Last year in the same quarter revenue was $3.3 billion, or $5.59 a share.
Goldman repurchased $5 billion of preferred shares from Warren Buffett's Berkshire Hathaway (NYSE:BRK-A) in the quarter, resulting in a one-time charge of $1.64 billion.
Minus the preferred share buyback, the bank would have earned $4.38 a share.
Revenue from fixed income, currency and commodities fell 28 percent.
Goldman Sachs was trading at $151.60, falling $2.18, or 1.42 percent, as of 11:37 AM EDT.
Tuesday, April 19, 2011
Goldman (GS) Guidance Less Than Inspiring
Labels:
Goldman Sachs,
Warren Buffett
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