- Goldman Sachs misses revenue estimates after a $470 million hit from consumer loan sales
- Earnings drop 18%, while fixed income trading revenue falls 17%
- Wall Street's volatility reflects in Goldman's results, leaving room for improvement
Goldman Sachs didn't quite hit the mark with their first-quarter results, and it's all thanks to a $470 million stumble tied to consumer loans sales.
So, the bank reported an 18% drop in earnings, landing at $3.23 billion, or $8.79 per share. Sure, that beat the estimates, but the overall revenue fell 5% to $12.22 billion, and that wasn't what the experts predicted. Talk about a rollercoaster ride!
Now, unlike other banks that have their fingers in different pies, Goldman Sachs gets most of its revenue from Wall Street activities, mainly trading and investment banking. But this time around, they didn't fare as well as JPMorgan Chase and Citigroup, who actually managed to beat first-quarter estimates. Ouch.
Fixed income trading revenue slipped 17% to $3.93 billion, while equities trading revenue dropped 7% to $3.02 billion. On the bright side, investment banking revenue came in higher than expected, even if it did fall 26% from last year.
But you know what they say: You win some, you lose some. As for Goldman Sachs, their results reflect just how much the bank is tied to Wall Street's ups and downs. With trading and investment banking not quite up to par, revenue growth was hard to come by. But hey, there's always next quarter, right?
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