Goldman Sachs share price down 3% on results revenue miss
The financial institution's earnings were up, but revenue was down in its Q1 profits report.
|Earnings per share (EPS)||$5.71|
|Net profits||$2.25 billion|
|Investment banking||$1.65 billion|
Goldman Sachs Q1 earnings down 3% as results revenue misses estimates
Goldman Sachs Q1 earnings per share were $5.71, more than the $4.99 financial analysts predicted. Goldman Sachs Q1 revenue was $8.81 billion, slightly less than the $8.87 billion expected from financial analysts. The financial institution’s vital investment banking division’s profits were largely unchanged from 2018 at $1.65 billion.
The bank’s revenue was 13% lower than a year ago, likely because of the volatility of Wall Street in December 2018. Goldman Sachs Q1 profits also likely were affected by the US government shutdown which slowed down the banks’ underwriting important initial public offerings (IPOs).
Despite the 1MDB financial scandal in which a banker helped defraud a Malaysian development company, Goldman Sachs share price increased by 20% overall in 2019. However, the bank acknowledged that other international concerns like Brexit led to a decrease in overseas investment.
Chief executive officer, (CEO), David Solomon, spoke about the mostly positive Goldman Sachs Q1 earnings report in a statement.
‘We are pleased with our performance in the first quarter, especially in the context of a muted start to the year,’ said Solomon. ‘Our core businesses generated solid results driven by our strong franchise positions,’ added Solomon.
How did Goldman Sachs Q1 earnings compare to other banks?
What’s next for Goldman Sachs Q2 earnings?
Goldman Sachs Q2 earnings may improve with its partnership with Apple to create an Apple Card. Solomon spoke about the bank’s branching out into fintech and expanding the bank’s brand.
‘We are focused on new opportunities to grow and diversify our business mix and serve a broader range of clients globally. With improving momentum across our businesses, we are confident that Goldman Sachs will generate attractive returns for our shareholders,’ said Solomon.
Goldman Sachs Q1 earnings highlight mixed US banks earnings season
Goldman Sachs Q1 profits show that though the bank posted high earnings because of cutting expenses and even bonuses for many employees. However, Goldman Sachs Q1 revenue was still impacted by investors’ concern about political issues in the US and in the UK.
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