Goldman Sachs beats Wall Street forecasts amid stronger-than-expected trading revenue (GS)

Richard Drew/AP

Goldman Sachs reported second-quarter earnings before the opening bell on Tuesday.
Both revenue and earnings per share beat Wall Street estimates.
The bank also reported equity sales-and-trading revenue that was above analyst expectations.
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Goldman Sachs reported better-than-expected financial results for the second quarter of 2019 as equity sales-and-trading revenue beat analysts forecasts. The firm also exceeded consensus estimates for overall revenue and earnings per share.

Here are the key numbers:

Revenue: $9.46 billion, versus $8.8 billion expected
Earnings per share: $5.81, versus $4.93 expected
Equities sales & trading revenue: $2.01 billion, versus $1.79 billion estimated by analysts surveyed by Bloomberg
Fixed income sales and trading revenue: $1.47 billion, versus $1.58 billion expected

Investing and lending revenues rose to $2.53 billion, its highest level in eight years. Overall sales fell by 2% from the same period last year due to a drop in the firm’s investment-management and investment-banking revenue.

"Given the strength of our client franchise, we are well positioned to benefit from a growing global economy," David Solomon, the chief executive officer of Goldman Sachs said in a press release. "And, our financial strength positions us to return capital to shareholders, including a significant increase in our quarterly dividend in the third quarter."

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The bank also increased its quarterly dividend to $1.25 per share from $0.85. Goldman returned $1.57 billion to shareholders during the quarter through stock repurchases of $1.25 billion and $319 million in dividends.

Goldman Sachs is one of number of major US banks scheduled to report earnings this week. Bank stocks slid yesterday after Citigroup reported a decline in net interest margins during the second quarter.

Goldman Sachs is up more than 25% year-to-date.

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