Goldman Sachs easily beat earnings expectation despite a heft decline in profits in the first quarter.
The company reported Tuesday that earnings fell 21% to $2.74 billion and revenue declined 7% from a year earlier to $11.9 billion.
Goldman said the weaker results were a result of a $1.64 billion preferred dividend, which was part of the company’s repayment of a $5 billion investment by Berkshire Hathaway. The decline in revenue Goldman attributed to weaker results in fixed income and equity trading and advisory.
Shares rose in early trading Tuesday because the company’s earning per share of $1.56 easily beat analyst expectation of 82 cents per share.
Investment banking revenues increased 5.5%, as underwriting fees rose 23%.
Net revenues from fixed income, currency and commodities trading, declined 28%, to $4.3 billion. Equities trading revenues fell 24% to $979 million. Revenues from advisory declined 23% to $357 million.