Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Goldman Drops 53%, Beats Analysts' Estimates

Giant brokerage writes off $2.1 billion, sees revenues fall 35%

By Jim O'Neill,  Newser User

Posted Mar 18, 2008 7:54 AM CDT
Email

(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.

The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs.
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.
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.
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.
Despite a profit falloff of 53%, Goldman Sachs first-quarter results buoyed Wall Street.   (Getty Images)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Lehman, Goldman results give markets a lift
Associated Press

Wall Street looking to Fed moves after brightspots from Lehman, Goldman
CNN

 
Wall Street • Goldman Sachs • earnings reports • income • credit crisis • writedowns • financial crisis

More Newser Stories

Goldman May See $2B Fourth Quarter Loss

Wall Street Bonuses To Sink

Wall Street Weighs Huge Bonuses Vs. Public Wrath

Goldman Won't Dole Out Cash Bonuses

In Switch, 'Real Economy' Hits Big Banks
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne