Goldman Sachs Beats Analyst Expectations Despite Lower Revenue

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The company made $1 billion more than anticipated.

Prominent investment bank Goldman Sachs posted their Q2 profit and revenue figures this morning. As is the case with many other major financial institutions, rising interest rates and economic uncertainty have taken a bite out of Goldman Sachs’ profits for the quarter.

For Q2, Goldman Sachs’ profits fell by 48% to $2.79 billion, or $7.73 overall. Revenue is also down by 23% to $11.86 billion. While this is less than ideal, however, there is an upshot: despite their revenue drops, Goldman Sachs still managed to beat the expectations of Wall Street analysts by a good billion dollars thanks primarily to the bank’s fixed income operations.

Wall Street was expecting a $6.58 share valuation versus the $7.73 actual, as well as $10.86 billion in revenue versus the $11.86 billion it got. Goldman Sachs’ fixed income operations earned it $3.61 billion in profits, which also beat expectations of $2.89 billion.

“We delivered solid results in the second quarter as clients turned to us for our expertise and execution in these challenging markets,” Goldman Sachs CEO David Solomon said in a press release.

“Despite increased volatility and uncertainty, I remain confident in our ability to navigate the environment, dynamically manage our resources and drive long-term, accretive returns for shareholders,” Solomon added.

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