Goldman Sachs (GS) Q1 Profit Falls Sharply But Still Tops the Street

April 19, 2011 8:49 AM EDT Send to a Friend
Goldman Sachs Group Inc. (NYSE: GS) posted a 72 percent decline in earnings for the first quarter ended March 31, 2011 as a $1.64 billion preferred dividend weighed on the bottom line.

The New-York based firm reported quarterly earnings of $2.74 billion or $1.56 per share, down from $3.46 billion or $5.59 per share in the same quarter last year.

Revenue for Goldman Sachs fell 6.9 percent to $11.89 billion in the three-month period.

On average, analysts had been looking for much more modest earnings of 82 cents per share on revenue of $10.18 billion.

Investment banking revenue for Goldman Sachs came in at $1.27 billion during the period, up 5 percent on a year-over-year basis. Financial advisory revenue was down 23 percent to $357 million.

"We are pleased with our first quarter results," said Lloyd Blankfein, Chairman and CEO. "Generally improving market and economic conditions, coupled with our strong client franchise, produced solid results. Looking ahead, we continue to see encouraging indications for economic activity globally."

The company's Tier 1 capital ratio was 14.6 percent in the period.

Shares of Goldman are up 1.89 percent to $156.68 in premarket trade Tuesday.


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