Goldman Sachs trading revenue tumbles 40%, shares fall
Investing.com - Investment banking giant Goldman Sachs (NYSE:GS) reported weaker than expected second quarter revenue on Tuesday, as a slump in trading weighed on the investment bank's results, sending its shares lower in pre-market trade.
The firm reported earnings per share of $3.95 on revenue of $7.89 billion in the April-June quarter. Analysts had expected EPS of $3.72 on revenue of $7.97 billion.
Revenue from the investment bank's fixed income trading unit totaled $1.16 billion for the quarter, down 40% from the same quarter a year earlier and missing forecasts of $1.47 billion.
Net revenues in Investment Banking were $1.73 billion for the second quarter of 2017, 3% lower than the second quarter of 2016.
“A mixed operating environment persisted into the second quarter as conditions continued to support underwriting and M&A, while constraining certain market-making activity,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer.
Traders will now turn their attention to the bank’s conference call due to start at 9:30AM ET (13:30GMT).
Goldman Sachs shares fell to $227.78 in trading prior to the opening bell, down 0.7% from Monday's closing price of $229.26.
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