Goldman Sachs Group Inc.'s stock slumped 2.6% in premarket trade Tuesday, after the banker reported first-quarter profit and revenue that missed expectations. Earnings for the quarter to March 31 rose to $2.16 billion, or $5.15 a share, from $1.20 billion, or $2.68 a share, in the same period a year ago, but fell short of the FactSet consensus of $5.31 a share. Revenue increased to $8.03 billion from $6.34 billion, but was below the FactSet consensus of $8.37 billion. Fixed income, currency and commodities client execution (FICC) revenue grew 16% to $1.70 billion, but fell well short of the FactSet consensus of $2.28 billion, as weakness in commodities, currencies and credit products offset increases in mortgages and interest rate products. Equity revenue declined 6% to $1.67 billion, just below the FactSet consensus of $1.69 billion, while a 16% jump in investment banking revenue to $1.70 billion beat the FactSet consensus of $1.63 billion. Separately, Goldman raised its quarterly dividend by 15% to 75 cents a share from 65 cents a share and added 50 million shares to its existing stock buyback program. The stock has lost 5.5% year to date through Monday, while the SPDR Financial Select Sector ETF has tacked on 0.2% and the Dow Jones Industrial Average has gained 4.4%.
Continue Reading Below
Copyright © 2017 MarketWatch, Inc.