Updated Saturday, September 5, 2015 as of 1:50 AM ET

Goldman Sachs Beats Estimates on Investment-Banking Revenue

(Bloomberg) -- Goldman Sachs Group Inc., the world’s most profitable securities firm before the financial crisis, reported earnings that topped analysts’ estimates on a 63 percent gain in revenue from underwriting stocks and bonds.

First-quarter net income rose 7 percent to $2.26 billion, or $4.29 a share, from $2.11 billion, or $3.92, a year earlier, the New York-based company said today in a statement. That was higher than all 24 analysts’ estimates in a Bloomberg survey.

Record debt-underwriting revenue and cost-cuts helped Chief Executive Officer Lloyd C. Blankfein, increase return on equity to 12.4 percent from 12.2 percent a year earlier. Blankfein, 58, has sought to boost returns by cutting $1.9 billion in expenses and benefiting as trading volume increases and some competitors exit business lines.

“It was a pretty good quarter from a capital-markets perspective,” Keith Davis, an analyst at Farr, Miller & Washington LLC, which manages about $890 million, including shares of Goldman Sachs, said before the results were released.

Goldman Sachs dropped to $146.30 in New York trading at 8:19 a.m. from $146.46 yesterday. The stock gained 15 percent this year through yesterday after advancing 41 percent in 2012. The shares reached $193.60 on Oct. 14, 2009.

Revenue rose 1 percent to $10.1 billion. Compensation, the firm’s biggest expense, fell 1 percent to $4.34 billion and amounted to 43 percent of revenue for the quarter, down from 44 percent a year earlier.

Get access to this article and thousands more...

All On Wall Street articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.

Already Registered?

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

Already a subscriber? Log in here