Goldman Sachs (GS) Stock Slipping Despite Earnings Beat, Bloomberg TV Examines Why

Bloomberg TV's Laura Keller discussed why Goldman Sachs (GS) stock is trading lower today, despite reporting better-than-expected Q2 results this morning.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- Shares of Goldman Sachs (GS) - Get Report  are slipping on Tuesday morning, despite the financial services company reporting better-than-expected 2016 second quarter earnings before today's morning bell.

"There are a couple of places where we've had disappointment here," Bloomberg TV's Laura Keller explained on "Bloomberg Go" Tuesday.

Goldman's overall compensation and expenses came in light as did equities trading, more "than we at Bloomberg had thought," Keller said.

The company reported second quarter compensation fell 13% year-over-year to $3.33 billion, while its operating expenses decreased 26% from the previous year to $5.47 billion. Second quarter equity trading was posted at $1.75 billion versus the first quarter's $1.78 billion and below Bloomberg's expectation of $1.79 billion.

"So if you compare it to some of these other banks, JP Morgan (JPM) actually had better-than-expectations on equities trading, Bank of America (BAC) and Citigroup (C) both matched what we thought the estimates would be," Keller noted.

Goldman reported second quarter earnings of $3.72 per share on revenue of $7.93 billion, beating Wall Street estimates of earnings of $3 per share on $7.58 billion in revenue.

Goldman stock is lower by 0.84% to $161.95 this morning.

Separately, TheStreet Ratings rated Goldman Sachs as a "hold" with a score of C.

The primary factors that have impacted this rating are mixed. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, TheStreet Ratings also finds weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: GS

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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