- Goldman Sachs reports first-quarter earnings per share of $3.92
- Revenue increased 64% from the previous quarter, to $9.95 billion
- Analysts were expecting EPS of $3.55 on revenue of $9.5 billion
NEW YORK ( TheStreet)-- Goldman Sachs (GS) earned $2.11 billion, or $3.92 per share in the first quarter, while raising its quarterly dividend to 46 cents per share as its business mix started to pay off.
Net income came in at $2.07 billion, more than double the year-ago quarter. Revenue came in at $9.5 billion, slightly above estimates of $9.45 billion. Goldman increased its quarterly dividend to $0.46 per share.
|Goldman Sachs Chairman and CEO Lloyd Blankfein|
"Because client activity remains relatively low in certain areas, especially in parts of investment banking, we believe that our mix of businesses gives the firm significant room for revenue growth as economic and market conditions continue to improve," said Chairman and CEO Lloyd Blankfein.Goldman's investment banking revenues were $1.15 billion, 9% lower than the year ago quarter and 35% higher than the fourth quarter of 2011. As had been Goldman's fixed income currencies and commodities client execution business contributed more revenues than any other unit. Still, its $3.46 billion in revenues was shy of some estimates. Sandler O'Neill analyst Jeff Harte, for example, had been looking for Goldman to post revenues of $3.885 billion in fixed income, currencies and commodities. Goldman's return on equity, a closely-watched measure of profitability, was 12.2% for the first quarter. While that is still below the 20% level it reached before the 2008 crisis, it is far better than the roughly 2% low it saw at one point in 2011. Goldman shares were slightly lower in premarket trading Wednesday. -- Written by Dan Freed in New York. Follow me on Twitter
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV