Goldman Sachs Q1 earnings beat expectations, revenue a miss

15 April 2019

(Sharecast News) - Goldman Sachs posted better-than-expected first-quarter earnings on Monday, but revenue was a miss.
Net earnings came in at $2.25bn in the three months to the end of March 2019, down 21% from the same period a year ago, with earnings per share of $5.71, down from $6.95 in the first quarter of 2018 but ahead of analysts' expectations for EPS of $4.89.

Operating expenses during the quarter fell 11% on the year to $5.86bn.

Meanwhile, revenue at the bank declined 13% from the same period a year to $8.81bn, coming in below consensus estimates of $8.93bn. Net revenue in the equities business declined 24% to $1.77bn, while revenue in the investment management segment was 12% lower than the first quarter of 2018 at $1.56bn.

Net revenues in fixed income, currency and commodities (FICC) client execution were down 11% at $1.84bn, reflecting lower net revenues in interest rate products, currencies and credit products, partially offset by higher net revenues in mortgages and commodities. Goldman said market conditions in the segment were better than they had been in the fourth quarter of 2018, while volatility levels were lower and client activity remained low.

Chairman and chief executive David M. Solomon said: "We are pleased with our performance in the first quarter, especially in the context of a muted start to the year. Our core businesses generated solid results driven by our strong franchise options. We are focused on new opportunities to grow and diversify our business mix and serve a broader range of clients globally.

"With improving momentum across our business, we are confident that Goldman Sachs will generate attractive returns for our shareholders."