NEW YORK (Reuters) - Goldman Sachs Group Inc's
The biggest U.S. investment bank by assets earned $1.05 billion, or $1.85 per share, more than double the $453 million, or 78 cents per share, of a year earlier, Goldman said on Tuesday.
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Analysts, on average, had forecast earnings of $2.27 per share on revenue of $8.1 billion, according to Thomson Reuters
Below are analysts comments on the results:
KEITH DAVIS, BANK ANALYST AND PRINCIPAL AT MONEY MANAGER FARR, MILLER & WASHINGTON IN WASHINGTON, DC:
"Obviously it's a disappointment. But it's one data point. I don't think the franchise has lost it's luster. Goldman was probably weaker than people thought."
"The compensation ratio of 44 percent seems pretty high relative to where JPMorgan came in and some others. It seems like they're continuing to pay their people, I guess they're worried about retention."
"I think the stock's going to be held back until we get some more clarity on what's going to happen with proprietary trading under Dodd-Frank (legislation)."
"Goldman can't release reserves, and JPMorgan, Wells and Citi can. That's the difference. If you're able to drop billions of dollars to your bottom line because consumer credit quality is improving it's a big benefit."
PETER KENNY, MANAGING DIRECTOR AT KNIGHT CAPITAL IN JERSEY CITY, NEW JERSEY.
"The Street has been really kind of getting wise to the fact that model just continues to be under relentless pressure. The space is under so much pressure from so many angles -- whether it is the regulatory environment, whether it is the lack of volume in the trading arena, whether it is the opportunities for investment banking or the public market . It's a very, very stark market for financials."
(Reporting by Chuck Mikolajczak, Compiled by Dan Wilchins)