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July 15, 2020, 7:42 a.m. EDT

Goldman's stock surges after big profit beat, as markets and investment banking revenue jump

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By Tomi Kilgore

Shares of Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS +0.02% surged 2.2% in premarket trading Wednesday, after the brokerage and banking services company reported a second-quarter profit that was well above expectations, amid strong revenue growth in its markets and investment banking businesses. Net income rose to $2.25 billion, or $6.26 a share, from $2.20 billion, or $5.81 a share, in the year-ago period. The FactSet consensus for earnings per share was $3.90. Total revenue grew 41% to $13.30 billion, as non-interest revenue climbed 47% to $12.35 billion to beat the FactSet consensus of $8.77 billion while net interest income fell 12% to $944 million to miss expectations of $1.16 billion. Investment banking revenue rose 36% to a record $2.66 billion, as "significantly higher" underwriting revenue partially offset by weakness in corporate lending and financial advisory. Global markets revenue soared 93% to $7.18 billion, as fixed income, currency and commodities (FICC) revenue more than doubled to $4.24 billion from $1.70 billion and equities revenue increased 46% to $2.94 billion. Goldman maintained its quarterly dividend of $1.25 a share. The stock has lost 6.9% year to date through Tuesday, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.88% has slipped 6.6%.

/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 194.86
+0.03 +0.02%
Volume: 9.07M
Sept. 18, 2020 4:00p
P/E Ratio
14.82
Dividend Yield
2.57%
Market Cap
$67.05 billion
Rev. per Employee
$1.34M
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,657.42
-244.56 -0.88%
Volume: 703.89M
Sept. 18, 2020 5:15p
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