NEW YORK CITY (dpa-AFX) - Investment bank Goldman Sachs Group, Inc. (GS) is expected to report second-quarter results on Tuesday.
The New York-based company provides investment banking, securities, and investment management services. It also offers a range of financial services to corporations, financial institutions, governments and high-net-worth individuals worldwide.
On average, 23 analysts polled by Thomson Reuters expect earnings of $1.17 per share for the quarter. Analysts' estimates typically exclude special items. Revenues are estimated to be $6.28 billion, a decline of 13.7 percent from last year.
An area for concern to investors today could be the firm's investment banking results, as the debt crisis in Europe and the economic situation in the U.S. have led to muted demand for such services.
In the preceding first quarter, the company earned $2.07 billion or $3.92 per share on net revenues of $9.95 billion. In the year-ago second quarter ended June 30, 2011, Goldman Sachs' profit was $1.05 billion or $1.85 per share. Net revenues amounted to $7.28 billion.
Among events during the just concluded quarter, ratings agency Moody's Investors Service last month downgraded the credit ratings of 15 major banks and securities firms that have operations in the global capital markets, including Goldman Sachs.
Among peers, JP Morgan Chase & Co. (JPM) last week reported a marginal drop in first-quarter profit, amid a solid performance by the Retail Financial Services division and a plunge in bad loan provision. Revenues increased year-over-year. Profit declined 7 percent in the Investment Bank division.
Citigroup Inc. (C) Monday reported a 12 percent drop in profit for the second quarter, amid lower revenues. The firm's investment banking reported a 21 percent decline in revenue.
GS shares moved between $90.43 and $124.90 in the 3-month period. The stock closed on Monday at $97.68, up $0.25 or 0.26 percent, on 4.51 million shares.
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