Goldman Sachs’ 2nd-quarter earnings beat estimates as trading desks drive revenue spike

Goldman Sachs reported second-quarter earnings Wednesday morning that beat analyst estimates for revenue and profit.
Quarterly revenue posted its second-highest reading ever as trading businesses surged on heightened market volatility.
Loan loss reserves reached $1.6 billion as the firm braced for credit-market fallout.
“Our strong financial performance across our client franchises demonstrates the inherent benefits of our diversified business model,” CEO David Solomon said.
Goldman shares gained as much as 4.1% in early trading.
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Goldman Sachs announced second-quarter earnings on Wednesday that beat analyst expectations and provided the first full-quarter look at its hit from the coronavirus pandemic.

The bank added $1.6 billion to its loan loss reserves over the period as credit health soured. The build-up led quarterly profit to fall 33% from the year-ago period. However, investors looked through the smaller-than-expected profit slump and focused on strong revenues across trading operations.

Goldman shares jumped as much as 4.1% in early Wednesday trading.

Here are the key numbers:

Revenue: $13.3 billion, versus the $9.71 billion estimate
Earnings per share: $6.26 per share, versus the $3.95 estimate
Net interest income: $944 million, down 12% from the year-ago period

Read more: An award-winning PIMCO fund manager who’s crushed 99% of his peers for years told us the 2 trades he’s making to stay ahead — and shared his key to credit investing today

“Our strong financial performance across our client franchises demonstrates the inherent benefits of our diversified business model,” CEO David Solomon said. “While the economic outlook remains uncertain, I am confident that we will continue to be the firm of choice for clients around the world who are looking to reshape their businesses and rebuild a more resilient economy.”

Goldman’s revenue is more concentrated in deal advising and trading operations than any other major Wall Street bank. That focus helped the firm offset loan-loss pressures with strong performances across its trading divisions. Investment banking revenue reached a record $2.7 billion, up 55% from the year-ago period.

Equities revenue hit $2.9 billion, its highest in 11 years. Fixed-income sales and trading brought in $4.2 billion, its best reading in nine years as the Federal Reserve’s bond-buying spree drove investors back into the corporate credit market.

The company’s latest figures follow a 46% profit decline in the first quarter driven by the pandemic’s initial fallout. Battered earnings fell below analysts’ already lowered expectations, but revenue trounced estimates as trading desks benefited …read more

Source:: Business Insider


These Six Sleeper Teams Could Surprise Everyone In 2020 MLB Season

While there’s plenty of uncertainty surrounding the 2020 Major League Baseball, we probably can bank on a handful of teams excelling this summer and potentially into the fall.

Both the Los Angeles Dodgers and New York Yankees are loaded from top to bottom and are primed to make serious bids for their respective league’s pennants. Last season’s World Series participants — the Houston Astros and Washington Nationals — also have enough pieces in place to make another trip to the Fall Classic.

Seemingly every season, however, there are one or two clubs that enter the campaign with little postseason buzz and wind up playing in October. Here are six teams that could prove doubters wrong in 2020 and reach the playoffs.

New York Mets
Yes, losing Noah Syndergaard will be a tough obstacle to overcome, but the Mets still boast a fairly strong starting rotation even without the hard-throwing righty. Jacob deGrom is a perennial Cy Young candidate, and Marcus Stroman and Rick Porcello will be motivated as ever as they both enter “prove it” seasons. New York’s lineup also features plenty of pop with the likes of J.D. Davis, Michael Conforto, Jeff McNeil and 2019 home run leader Pete Alonso.

Los Angeles Angels
The Angels made one of the biggest splashes in the offseason by adding one of the best players in the game, Anthony Rendon. The superstar third baseman joins a pretty exciting lineup that includes power bat Justin Upton, budding superstar Shohei Ohtani and, of course, three-time American League MVP Mike Trout. LA’s postseason prospects this season likely will come down to pitching, and if the likes of Andrew Heaney and Julio Teheran exceed expectations, the Halos potentially could sneak into a wild-card spot.

More MLB: Five Records We Could See Fall In 2020 Season

Cincinnati Reds
The NL Central is shaping up to feature one of the more entertaining division races this season, and we probably shouldn’t rule out the Reds claiming the crown. Cincinnati boasts a very strong front end of the rotation in Luis Castillo, Sonny Gray and Trevor Bauer, who will be looking to bounce back from his underwhelming 2019 season in a contract year. The Reds also made some nice additions to their lineup this offseason in the form of Mike Moustakas and Nick Castellanos.

Chicago White Sox
Don’t look now, but the South Siders potentially could have one of the more potent lineups in the American League this …read more

Source:: – MLB


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