Goldman Sachs Tops Estimates

Goldman Sachs(GS - Cramer's Take - Stockpickr) posted fourth-quarter earnings that easily beat analysts' estimates, helped by strong investment-banking activity and growth in equities trading.

The New York investment bank earned $3.22 billion, or $7.01 a share, in the latest quarter, on revenue of $10.74 billion. A year ago, Goldman earned $3.15 billion, or $6.59 a share, and had revenue of $9.41 billion.

Revenue did decline, however, by 13% from $12.33 billion in the fiscal third quarter.

Analysts surveyed by Thomson Financial were looking for a profit of $6.61 a share and a top line of $10.16 billion in the latest quarter.

For the full year, Goldman made $11.4 billion, or $24.73 a share, an increase of 21% when compared with $9.4 billion, or $19.69 a share in 2006. Total net revenue for the full year rose 22% to $45.9 billion.

"Inherent in our commitment to our clients is the need to help them execute their transactions in all market conditions and, as a result, we are ever mindful of the importance of effective risk management," said Goldman Chairman and CEO Lloyd Blankfein. "Looking forward, we continue to see significant growth opportunities across the global economy."

Goldman Sachs: Not Just a Hedge Fund

As the golden boy on Wall Street, Goldman has been one of few firms to shine despite credit market turbulence this year. It has avoided the mega-writedowns from leveraged loans and collateralized debt obligations, or CDOs, that other brokerage firms have suffered.