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Goldman absorbs subprime sucker punch to beat estimates, allthough not by much

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Goldman Sachs beat Q2 analyst estimates and last year's net earnings by 3%, posting net earnings of $2.33bn or $4.93 a share, up from $2.29bn or $4.78 a share last year. The consensus analyst estimate for the quarter was $4.76. Net revenue (taking out interest expense) fell 0.6% to $10.18bn but beat analyst estimates of $10.16bn.
Goldman has yet to beat last year's record quarter earnings of $6.67 a share and net revenue of $12.73bn.
Goldman's fixed income, currency and commodities revenue dropped 24% from last year due to the subprime fallout. Goldman's investment banking and asset management/securities divisions each experienced a 13% increase in revenue from last year, booking $1.72bn and $1.81bn respectively.
Like Lehman, Goldman is booking almost half its revenue overseas, although its two major foreign investments in Commercial Bank of China and Sumitomo Mitsui Financial Group dragged down results by $189mm.
Goldman Quarterly Earnings Beat Estimates [Reuters via New York Times]
Earnings at Bear, Goldman Suffer Due to Subprime Mess [Wall Street Journal]



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