Goldman Sachs misses, cites ‘mixed’ environment (GS)

Goldman Sachs reported earnings per share of $5.15 on revenues of $8 billion in the first quarter of 2017.

That’s below analyst expectations. Analysts had been expecting adjusted earnings per share of $5.33 on revenues of $8.32 billion.

The results are striking, as JPMorgan, Citigroup, Wells Fargo, and Bank of America all reported earnings ahead of analyst estimates.

“The operating environment was mixed, with client activity challenged in certain market-making businesses and a more attractive backdrop for underwriting in our investment banking franchise,” Goldman Sachs chief Lloyd Blankfein said in a statement.

Total revenues came in below those of the fourth quarter, with investment banking the only key business line to report a quarter-on-quarter improvement.

Fixed income in particular disappointed, with revenues up just 1% on the first quarter of 2016, and down from the final three months of 2016. In comparison, Goldman Sachs’ rivals have posted double-digit gains in fixed income revenues.

Here are the key numbers:

• Investment banking revenues of $1.7 billion were up 16% year-on-year.
• Fixed income, currencies and commodities revenues, at $1.7 billion, were up just 1% on the same period last year, and down 16% from the fourth quarter.
• Equities revenues, at $1.7 billion, were down 6% year-on-year.
• Investing and lending revenues were $1.5 billion, down 1% quarter-on-quarter, but up sharply from the first quarter of 2016 when the unit struggled.
• Investment management revenues revenues were $1.5 billion, up 12% year-on-year.

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