Goldman Sachs handily beats quarterly earnings expectations

Lloyd Fonzie Blankfein

Goldman Sachs topped forecasts with earnings per share of $3.72 and revenue of $7.932 billion.

Analysts were expecting earnings of $3 a share on revenue of $7.581 billion, according to a Thomson Reuters consensus. For the same quarter a year ago, Goldman reported $1.98 a share on $9.07 billion in revenue.

"Despite the uncertainty created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently," said Lloyd C. Blankfein, Chairman and CEO of Goldman Sachs.

Goldman Sachs stock is down more than 9 percent so far in 2016. Goldman shares rebounded marginally heading into the open Tuesday morning.

The bank said it reduced overall staffing by 5 percent in the second quarter and compensation fell 13 percent compared to the second quarter of 2015, which Goldman attributed to a decrease in net revenue.

The bank's revenue from its fixed income, currency and commodities trading unit was $1.93 billion, 20 percent higher than in the second quarter a year ago and also up compared to the first quarter of this year. Goldman and other big Wall Street banks suffered under-performance in their FICC businesses in the first quarter of this year, which impacted its revenue.

For most major Wall Street banks, the ongoing earnings season has represented a bit of a rebound. JPMorgan Chase earnings last Thursday easily beat estimates. Wells Fargo matched earnings expectations Friday and Citigroup posted a beat as well. To start this week, Bank of America posted a top- and bottom-line beat Monday.

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