Goldman Sachs Reports Mixed Q1 Earnings

Earnings season for big banks continued Monday morning with Goldman Sachs Group Inc GS reporting mixed first quarter results.

What Happened

Goldman Sachs said it earned $5.71 per share in the first quarter on revenue of $8.807 billion versus expectations of $4.89 per share and $9.04 billion. Net earnings for the quarter fell from $2.832 billion in the same quarter last year to $2.251 billion as total revenue fell 13 percent.

By segment, Investment Banking revenue was unchanged year-over-year at $1.81 billion, Institutional Client Services revenue fell 18 percent to $3.61 billion, Investing & Lending revenue fell 14 percent to $1.84 billion.

Book value per common share rose from $186.73 last year to $209.07 and tangible book value per share rose from $176.28 to $198.25.

Why It's Important

Goldman Sachs said it assumed top ranks in completed mergers and acquisitions for the year-to-date period. This contributed to strong performance in the Financial Advisory (part of the Investment Banking unit). The company also ranked No. 1 in global equity and equity-related offerings and common stock offers so far in 2019.

The company's core business generated "solid results" despite a "muted start" to 2019, Goldman Sachs CEO and Chairman David Solomon said in a press release.

Shares of Goldman Sachs were trading nearly flat following the print after swinging from negative to positive. The stock closed Friday at $207.84 per share.

Related Links:

Wells Fargo Reports Q1 Earnings Beat, Stock Ticks Higher

JPMorgan Trades Higher After Q1 Earnings Beat, Record Revenue