HomeFinancial MarketsGoldman Sachs Beats Expectations Despite 48% Profit Drop

Goldman Sachs Beats Expectations Despite 48% Profit Drop

Goldman Sachs Group Inc came on top in the second quarter, reporting results that decisively beat the analysts’ expectations. According to Monday’s report, the investment bank had $7.73 a share compared to an estimated $6.58 per share and $11.86 billion revenue vs. $10.86 billion expected.

This is considered a success for Goldman Sachs despite a 48 percent drop in profits, which came at $2.8 billion as opposed to $5.3 billion in the same period in 2021. This is because Goldman joined Citigroup as one of the few major U.S. banks to have a positive second quarter. The majority of competitors, including Wells Fargo, JPMorgan Chase, and Morgan Stanley, either reported mixed results or missed the mark entirely.

Goldman outperforming expectations isn’t a surprise considering its track record of doing well in times of challenging economy. The surging prices of assets surely helped, given the bank’s diverse investment vehicle.

Following the report, Goldman Sachs stock (GS) took a four percent jump in premarket trading. After closing at $293.67 on Friday, the bank’s shares reached $309.33 at one point on Monday morning. Still, this is still a 23 percent drop from the start of the year, when Goldman traded north of $400 per share.

Activist Investor Elliott Management Won’t Pursue Changes on Salesforce’s Board

Improved results in the Q4 earnings report have allowed Salesforce to keep activist investor Elliott Management from pursuing changes on the company’s Board of...

First Citizens Bancshares Makes a Deal to Acquire Collapsed Silicon Valley Bank

The Federal Deposit Insurance Corporation (FDIC) has found a taker for the collapsed Silicon Valley Bank (SVB). On Monday, FDIC confirmed that North Carolina-based...

Banking Sector Stress Could Lead To Tighter Lending; ECB, Fed Officials Claim

Uncertainty across the banking sector is being closely monitored due to the potential for a credit crunch, a Federal Reserve official divulged on Monday....