Goldman Sachs Group Inc. Earnings Cheat Sheet: Misses Estimates | Goldman Sachs

Goldman Sachs Group Inc. Earnings Cheat Sheet: Misses Estimates | Goldman Sachs

S&P 500 (NYSE:SPY) component Goldman Sachs Group Inc. (NYSE:GS) reported its results for the second quarter. Goldman Sachs Group, Inc. is a global investment banking and securities firm that specializes in investment banking, trading and principal investments, asset management and securities services.

Goldman Sachs Group Earnings Cheat Sheet for the Second Quarter

Results: Net income for Goldman Sachs Group Inc. rose to $1.09 billion ($1.85 per share) vs. $613 million (78 cents per share) in the same quarter a year earlier. This marks a rise of 77.3% from the year earlier quarter.

Revenue: Revenue fell 39% to $7.28 billion from the year earlier.

Actual vs. Wall St. Expectations: GS fell short of the mean analyst estimate of $2.29 per share.

Quoting Management: “During the second quarter, the operating environment was more difficult given global macro- economic concerns,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “In addition, certain of our businesses had disappointing results as we reduced our market risk in response to attempting to manage fluctuations in prices and market liquidity. Despite these challenges, we continued to address our clients’ needs through our strong global franchise and are well positioned to respond as economic conditions and sentiment improve.” Read More

Goldman Sach: US STOCKS-Futures climb on IBM results, Goldman weighs

Goldman Sach: US STOCKS-Futures climb on IBM results, Goldman weighs

U.S. stock index futures rose on Tuesday as IBM rallied after its quarterly results, though indexes were slightly off their early highs following a weak report from Goldman Sachs.

Dow component International Business Machines Corp (IBM.N) added 2 percent to $178.75, but on the downside, Goldman Sachs Group Inc (GS.N) fell 3 percent to $125.40 before the bell.

IBM said late Monday that new business at its services division surged more than expected in the second quarter, raising hopes 2011 would be a good year for the technology sector. For details, see

Goldman said net income rose during the second quarter but fell short of lowered market expectations as fixed income trading revenue dropped sharply.

Bank of America early Tuesday posted a second-quarter net loss of $8.8 billion after a big settlement with mortgage bond investors. Excluding charges, net income was $3.7 billion, but revenue tumbled 54 percent.

"A lot of investors were worried that the recent soft patch we went through here would show up in earnings, but IBM is showing that multinationals can really fill the gap. That's encouraging," said Cort Gwon, chief strategist at HudsonView Capital Management in New York.

"The big concern with Bank of America was that they were going to have more write-offs than anticipated from the settlement. But if they can put the settlement behind them, they should do well."

S&P 500 futures SPc1 rose 8.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 added 78 points and Nasdaq 100 futures NDc1 rose 18.5 points.

Coca-Cola Co (KO.N) reported slightly better-than-expected quarterly results on Tuesday, helped by strong growth in emerging markets. Johnson & Johnson (JNJ.N) also posted quarterly results. Read More

Goldman Sachs Misses Profit Expectations, Earning $1.05 Billion In Second Quater | Goldman Sachs

Goldman Sachs Misses Profit Expectations, Earning $1.05 Billion In Second Quater | Goldman Sachs

Goldman Sachs Group Inc's net income rose during the second quarter but fell short of lowered market expectations as fixed income trading revenue dropped sharply.

The biggest U.S. investment bank by assets earned $1.05 billion, or $1.85 per share, more than double the $453 million, or 78 cents per share, of a year earlier, Goldman said on Tuesday.

Revenue dropped 17.6 percent to $7.3 billion, while expenses fell a more dramatic 23.3 percent. Fixed income, currency and commodities trading revenue fell 53 percent to $1.6 billion.

Analysts, on average, had forecast earnings of $2.27 per share on revenue of $8.1 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Lauren Tara LaCapra, editing by Knut Engelmann and John Wallace

Copyright 2011 Thomson Reuters. Click for Restrictions.

Goldman Sach: sGoldman Profit Misses Estimates; 1,000 Jobs to Be Cut

Goldman Sach: sGoldman Profit Misses Estimates; 1,000 Jobs to Be Cut

Goldman Sachs Group Inc. reported a second-quarter profit of $1.05 billion, significantly lower than expectations, as difficult markets led the Wall Street bank to reduce risk taking to the lowest levels in five years.

The per-share earnings of $1.85 were 42 cents below the consensus expectations of analysts, only the fifth profit miss in its 12 years as a publicly traded company.

"Certain of our businesses had disappointing results as we reduced our market risk in response to attempting to manage fluctuations in prices and market liquidity," said Chief Executive Lloyd Blankfein in a statement.

Goldman also disclosed plans to cut about 1,000 jobs as part of its cost-cutting measures, said the firm's chief financial officer David Viniar on the company's conference call to discuss its second-quarter earnings .

The job cuts will be part of the securities firm's plans to reduce its compensation and non-compensation expenses by $1.2 billion of the course of 2011, announced in its second-quarter earnings filing. Read More

Goldman Goes Down After Missing Sales, Profit Views | Buffett's Warrants On Goldman Sachs

Goldman Goes Down After Missing Sales, Profit Views | Buffett's Warrants On Goldman Sachs

Shares of Goldman Sachs hit a 52-week low on Monday and opened at a new yearly low on Tuesday morning after the financial behemoth came up short on both sales and profit forecasts.

Goldman reported net income for its second quarter of $1.08 billion, or $1.85 per share, on revenue of $7.28 billion. Wall Street had expected EPS of $2.27 on revenue of $8.14 billion.

In early trading, Goldman Sachs was changing hands at $125.90 per share, down 2.6% from Monday’s closing price of $129.33, but off of lows near $125 in pre-market trading Tuesday.

Investment banking revenues came in at $1.45 billion, up 54% from the second quarter of 2010 and up 14% from the first three months of 2011. Goldman made note of its top spot in putting together deals around the world in its earnings release.

The firm backpedaled in its institutional client services division where revenues slipped 29% from the year-ago quarter to $3.52 billion.

Bond and currency trading paced the overall 18% decline in company-wide revenue.

JPMorgan Chase and Citigroup both pleased investors with results released last week. Bank of America was down 0.8% on Tuesday morning after its release. Wells Fargo was up 1.9% after topping profit forecasts. Read More

Buffett's Warrants On Goldman Sachs:"Warren Buffett Wants Goldman's (GS) Blankfein To Stick Around" | Buffett's Warrants

Buffett's Warrants On Goldman Sachs:"Warren Buffett Wants Goldman's (GS) Blankfein To Stick Around" | Buffett's Warrants

The Oracle of Omaha is standing by Goldman Sachs (NYSE: GS) CEO Lloyd Blankfein and he doesn't plan to cash in his warrants anytime soon.

At the annual Allen & Company conference, when asked by New York Times DealBook if Mr. Blankfein would resign anytime soon, Warren Buffett said, "I don't think he is. I've seen nothing to indicate that myself, and I don't want him to." Buffett wants him to stay on.

Buffett also plans to hold onto the warrants he received in connection with his $5 billion 2008 investment in the company right up until they expire in 2013.

"We'll wait till the last month or two, before their expiration," he said.

The warrants, which have a $115/share strike, are worth approximately $900 million based on Goldman's current market price of $135, DealBook notes. Read More