Goldman Sachs Q2 profit rebounds on recovery in trading activity

For the reporting quarter, analysts expect the company to deliver $3 in earnings per share (EPS).

Institutional Client Services net revenues rose 2% year over year to $3.68 billion.

A solid earnings beat from Dow component Microsoft (MSFT) after the close of trading Tuesday could give the 30-stock index a lift heading into Wednesday’s trading session.

Here’s a full break down of Goldman Sachs’ businesses.

Estimize is a bit more optimistic, with the consensus of 82 respondents pegging earnings at $3.12 per share on revenue of $7.63 billion for the three months that ended in June.

Earnings at the USA investment bank came in at $1.6 billion, a 78.4 percent jump from year-ago results that were marred by large legal costs for mortgage securities litigation. Equities-trading revenue of $US1.75 billion, an 11 per cent drop, missed the $US1.88 billion estimate. Moreover, R. G. Niederhoffer Capital Management Inc has 11.81% invested in the company for 10,400 shares.

The Goldman Sachs Group, Inc is a bank holding company and a financial holding company. The company reported revenues net of interest income of $7.9bn, down 13 per cent from $9.1bn the year before but an increase of 25 per cent on $6.3bn in the quarter before.

The results topped Wall Street expectations.

Goldman shares dipped 0.5 percent to $162.48 in premarket trading.

The second-quarter profit of this global investment bank is predicted to have slipped $0.20 per share, according to Wall Street analysts, from the $0.79 reported a year ago. Currently, this investment bank has $1.31 trillion assets under supervision. The second-quarter bonus cut comes on top of a 40% cut to compensation in the previous quarter. The most expectant earnings per share estimate of the stock is set at $15.23 while the conservative estimates kept at $9.45 over the current year.

Several banks that have already reported second-quarter results posted increases in revenue from units that trade bonds, currencies and commodities, driven in part by trading activity around the extraordinary British vote last month to leave the European Union, otherwise known as Brexit.

The bigger commercial banks historically have had deeper ties to corporate clients that trade more consistently than hedge funds, a core Goldman clientele battered by low returns and exits by their investors. The Investment Banking segment’s services include strategic advisory assignments and debt and equity underwriting of public offerings and private placements.

After a weak first quarter, the firm likely would have needed a huge rebound in the second quarter in order to see overall improvement for the year.