Goldman Sachs is set to report second-quarter earnings – here’s what the Street expects

Goldman Sachs on Tuesday reported second-quarter earnings that blew past Wall Street expectations, propelled by strong performance in investment banking amid a robust IPO market.

Here are the numbers:

Earnings: $15.02 per share vs. $10.24 expected by analysts polled by Refinitiv. A year ago, Goldman recorded an EPS of $6.26 (53 cents per share if accounted for costs related to the 1MDB settlement.)
Revenue: $15.39 billion vs. $12.17 billion expected

Shares of Goldman rose 0.5% in premarket trading following the earnings release. The stock is already up 45% in 2021 as investors anticipated strong results amid the economic comeback from the pandemic.

Investment banking posted its second-highest revenue quarter ever, behind the first quarter of 2021, as a booming IPO market boosted Goldman’s equity underwriting.

Net revenues from investment banking totaled $3.61 billion, ahead of consensus estimate of $3 billion, according to FactSet. Goldman said the second quarter recorded the second strongest performance in financial advisory, equity underwriting and debt underwriting. The backlog increased significantly compared with the end of 2020, ending the quarter at a record level, the bank said.

Year to date, the New York-based bank ranked number one in mergers and acquisitions globally, worldwide equity and equity-related offerings, common stock offerings and initial public offerings.

Goldman’s trading businesses saw an expected slowdown as the boom from pandemic-induced volatility started to fade. Net revenues totaled $4.90 billion in the last quarter, compared to $7.58 billion in the first quarter of 2021. The sum was split between $2.23 billion in equities trading and $2.58 billion in fixed income. Both figures came in slightly above estimates, according to FactSet.

Its asset management unit generated record revenues of $5.13 billion in the second quarter, boosted by record sales from equity investments.

Goldman also announced that its board approved a planned 60% increase in the quarterly dividend to $2 per share beginning in the third quarter of 2021.

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