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Goldman Drops 53%, Beats Analysts' Estimates

Posted Mar 18, 08 7:54 AM CDT in Business 

(Newser) – Goldman Sachs today beat analysts' dire predictions even though it reported a 53% drop in first-quarter profits—the worst falloff since 1999—after a $2.1 billion writeoff, reports Bloomberg. Analysts had expected the Wall Street brokerage to see profits drop more than 60%. Goldman said net income was $1.51 billion, down from $3.2 billion a year earlier.

Per-share earnings were $3.23, compared to $6.67 in the first quarter last year, as net revenue dropped 35% to $8.34 billion from $12.73 billion, Goldman said. Although the company has seen its stock price slip 30% this year as investor confidence in the financial industry has waned, Goldman has had minimal exposure to the subprime crisis.

Source Bloomberg

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The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs.   (AP Photo/Richard Drew, file)
Lloyd Blankfein, chairman and CEO of Goldman Sachs Group.   (AP Photo/Peter Dejong)
Despite a profit falloff of 53%, Goldman Sachs first-quarter results beat analysts' expectations and drove its share price up in premarket trading.   (Getty Images)
Despite a profit falloff of 53%, Goldman Sachs first-quarter results buoyed Wall Street.   (Getty Images)
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Financial Crisis • credit crisis • Wall Street • Goldman Sachs • earnings reports • writedowns • income


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