Goldman Sachs (GS) Kills It, But Shares Trade Flat

Shares of Goldman Sachs (NYSE: GS) are trading flat after reporting blow-out results this morning. Goldman reported EPS of $8.20, or $3 above the consensus of $5.20. The earnings were higher due to lower compensation expenses of 35.8% of revenue for the quarter, versus 48% last year.

The reaction in the shares is surprising given that the estimates on Goldman were being cut for the last half of the quarter almost daily. Investors in Goldman may be more focused on news out today that the Obama administration is going to propose new rules to limit the size and risk taken by the country's biggest banks.

To put the $8.20 quarter in prospective. If Goldman could match that number of the next four quarters they would make $32.80 per share in earnings on the year. That would make the P/E multiple 5x.

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