Goldman Trounces Estimates; UK and Compensation Issues (GS)

Posted in pre-market 
April 20th, 2010

Goldman Sachs Group Inc. (NYSE: GS) has reported earnings.  The bulge bracket brokerage firm reported 1Q as $5.59 EPS, well above the $4.01 estimates from Thomson Reuters and $4.16 estimates from Dow Jones.  This translates to $3.46 billion in income and revenues were $12.78 billion.  Book Value Per Common Share came in at $122.52 as of the end of the quarter.  There is also a note that United Kingdom’s FSA will begin a formal investigation into the firm’s practices.

UPDATE 9:22 AM EST: GS shares are up 1.95% at $166.52 on over 2.1 million shares.

  • TIME 8:07 AM EST: we are checking the trading volume because we saw more shares than this almost 30 minutes ago… At 8:07 are up 0.8% at $164.62 on just over 250,000 shares.
  • 7:40: Shares are up at $164.00 after a $163.32 close and we have already seen 380,000 shares trade hands.

REVENUES & OPERATIONS
Investment Banking Revenue Rose 44% To $1.18B
Financial Advisory Revenue Fell 12% To $464M
Return On Avg Common Equity 20.1%
Trading & Principal Investments Revenue Rose 43% To $10.25B
FICC Revenue Rose 13% To $7.39B
Equities Revenues Rose 18% To $2.35B
Equity Underwriting Revenues $371M
Debt Underwriting Revenues $349M
Total Underwriting Revenues $720M
Securities Services Revenues Fell 21% To $395M
Compensation/Benefits Expenses 43% Of Net Revenues
Non-Compensation Expenses $2.12B
Operating Expenses Rose 12% To $7.62B

CAPITAL METRICS:
Total Capital $253.35B
Tier 1 Capital Ratio Under Basel I 15%; Tier 1 Common Ratio Under Basel I 12.4%
Bought Back 13.2M Shares For $2.27B
Total Assets $881B
Level 3 Assets About $45B, or about 5.1%;
Total Capital $253.35B
Average Global Core Excess Liquidity $162B

JON OGG

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