Seeking Alpha

Goldman beats despite trading slowdown

  • EPS of $4.02 compares with $4.29 a year ago and $4.60 in Q4. Revenue of $9.33B falls from $10.09B. Annualized ROE of 10.9% in Q1.
  • Investment banking revenue of $1.78B up 13% Y/Y, with financial advisory revenue of $682M up 41%, equity underwriting revenue of $437M up12%, debt underwriting of $660M down 5%.
  • Institutional client services revenue of $4.446B down 13% Y/Y, with FICC revenue of $2.85B down 11%, not terribly out of line with dim expectations, but Morgan Stanley and BofA managed to report gains in this segment (Citi and JPMorgan had declines). Given the fixed to shrinking pie size, Goldman lost some share during the Q.
  • Investing & Lending revenue of $1.529B downb 26% Y/Y. Investment management revenue of $1.152B up 9%.
  • Operating expenses of $6.31B off 6% from a year ago, with compensation and benefits expense of $4.01B down 8%. Compensation and benefits as a percentage of revenue of 43% is flat. Total headcount down 1% during the quarter.
  • CC at 9:30 ET
  • Press release, Q1 results
  • GS +2% premarket

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Comments (3)
  • Grant Dossetto
    , contributor
    Comments (187) | Send Message
     
    A beat of dramatically lowered estimates doesn't change the fact that Goldman had a very bad quarter.
    17 Apr 2014, 08:13 AM Reply Like
  • Deja Vu
    , contributor
    Comments (1403) | Send Message
     
    I wait for the next Hollywood blockbuster "American Yakuza"...
    17 Apr 2014, 08:14 AM Reply Like
  • june1234
    , contributor
    Comments (3116) | Send Message
     
    Short of any CEO jumping out of a window during earnings call , up it is. Up 2% already premarket. Its not rocket science
    17 Apr 2014, 08:20 AM Reply Like
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