With their shares just $20 from their all-time high of $255 – there were certainly high expectations going into the Q2 update from Goldman Sachs. Indeed, the headline for Goldman was an impressive beat, with second quarter income coming in at $3.95 per share – well above the analysts’ expectations of $3.39 per share.

However, a closer look at the results shows a slightly different picture. From what had been difficult trading conditions for investments banks in general recently – this is also reflected in Goldman’s results today, with revenue from the investment banking department for this quarter 3% lower than previous, to $1.73 billion. To add to this trend, FX and Commodity trading desk also reported a large plunge in revenue, down 40% to $1.16 billion.

This has clearly fed through to investor sentiment for the stock today, with the stock down $2 in pre-market trading.

Good luck,

Jordan Hiscott, Chief Trader

 

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