Brendan McDermid | Reuters
Goldman Sachs said profit rose to $2.57 billion, exceeding analysts’ estimates.
Company-wide revenue rose 19 percent to $9.40 billion, beating the $8.74 billion estimate of analysts surveyed by Thomson Reuters.
Here’s what Wall Street expects:
Earnings: $4.66 per share, an 18 percent increase from a year earlier, according to the average analyst estimate compiled by Thomson Reuters.Revenue: $8.74 billion, an 11 percent increase, according to the average estimate compiled by Thomson Reuters.Trading revenue: Fixed income at $1.65 billion, equities at $1.91 billion, according to FactSet.Goldman, led by Chief Executive Officer Lloyd Blankfein, is at a crossroads. After 12 years running the investment bank, Blankfein is set to announce that David Solomon, the bank's current president, will soon take over the top role.
Stung by an industry-wide slowdown in trading and restrictions on risk-taking, Goldman has yet to regain the profitability it had in the wake of the financial crisis. The new CEO will have to focus on the firm's historic strengths of trading and deal-making, while aggressively expanding a new consumer-facing business.
Last month, Goldman was forced to maintain its dividend and share buyback plans unchanged from last year after fumbling a key part of its annual stress test. Its shares are 9.2 percent lower this year, under-performing rivals including J. P. Morgan Chase and Morgan Stanley and the broader indexes.
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