Goldman Sachs Group Inc. (NYSE:GS) announced Tuesday it earned a $3.44 billion net profit in the second quarter, or $4.93 a share,
beating analysts expectations. The profit is a 65% rise from last quarter.
Analysts had predicted earnings of $3.48 a share and a revenue of $10.66 billion, according to
The Wall Street Journal. Those earnings were aided by some dealmaking.
The firm's investment banking unit
saw $1.44 billion in net revenue,
75% more than its first-quarter numbers. Also buoying the impressive
results was record quarterly net revenue in equity underwriting,
fixed income, and currency and commodity trading. For the calendar
year to date, Goldman ranked first in announced mergers and
acquisitions advisory fees globally.
Some of the deals Goldman has worked on this quarter include:
- A $14.6 billion deal, in which Liberty Media Corp. agreed to spin off its Liberty Entertainment Inc., a vehicle that holds Liberty's interests in DirecTV and other assets
- The $5.6 billion acquisition of Nikko Cordial
Securities Inc. brokerage and parts of the Nikko Citigroup Ltd.
investment bank from Citigroup Inc. (NYSE:C) by Sumitomo Mitsui
- Kohlberg Kravis Roberts & Co.'s $1.9 billion purchase of
Anheuser-Busch InBev's South Korean Oriental Brewery
To see more deals Goldman has had a hand in this quarter, check out The Deal Pipeline (subscription required). -
Sara BehunekJ.P. Morgan Chase earnings previewBank of America earnings previewCitigroup earnings preview
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The question is; what does this portend for the future?