NEW YORK (TheStreet) -- Shares of Goldman Sachs (GS) - Get Report are increasing by 2.24% to $162.36 in afternoon trading on Tuesday, after the company posted a profit of $2.68 per share for the 2016 first quarter, topping estimates of $2.45 per share.

TheStreet's Jim Cramer, portfolio manager of the charitable trust Action Alerts PLUS, was shocked that investors were selling shares earlier in the day because of double-digit declines in earnings and revenue for the quarter. (See video, above.)

"The window does open for partners to sell, but this number reflected the worst quarter, not unlike Morgan Stanley (MS)," Cramer added.

"Take a look at Morgan Stanley when it opened up, it went down, but then they started talking about how the next quarter is going to be better. Same with Goldman," Cramer explained.

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Goldman Sachs compensation and benefits expenses dropped 40% year over year for the first quarter, which Cramer called a "remarkable number."

"I think [CEO] Lloyd Blankfein and [COO] Gary Cohn are bringing it," Cramer concluded.

Separately, Goldman Sachs has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's strengths, such as reasonable valuation levels, good cash flow from operations and expanding profit margins, and its weaknesses, including deteriorating net income, disappointing return on equity and generally disappointing stock performance.

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 article's author.

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