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Goldman Beats On Top And Bottom Line As Secular Business Decline Continues, Comp Slides
Goldman's earnings are out and at revenues of $9.95 billion and EPS of $3.92 (compared to expectations of $9.41 billion and EPS $3.55), coupled with an increase in the dividend from $0.35 to $0.46 per share (exp. $0.40), the company appears to have done solidly better than expected. And yet, not all was sunny skies. As expected, declining secular markets continue to impact the company, whose ongoing secular decline is shown on the chart below. The reason - volume, which continues to slide for reasons already discussed extensively. To wit: "Net revenues in Investment Banking were $1.15 billion, 9% lower than the first quarter of 2011 and 35% higher than the fourth quarter of 2011....Net revenues in equity underwriting were significantly lower than the first quarter of 2011, primarily reflecting a decline in industry-wide activity. Net revenues in debt underwriting were lower compared with a strong first quarter of 2011, primarily reflecting a decline in leveraged finance activity." Thank god for CDS (aka derivatives): "Net revenues in Fixed Income, Currency and Commodities Client Execution were $3.46 billion, 20% lower than a solid first quarter of 2011, as higher net revenues in interest rate products were more than offset by lower net revenues in the other major businesses....Net revenues in Equities were $2.25 billion, 3% lower than the first quarter of 2011, as higher net revenues in equities client execution, reflecting an increase in derivatives, were more than offset by lower commissions and fees, consistent with lower market volumes." DVA loss for Q1 was $225 million. Finally, on the revenue side, hurray for Goldman Prop, aka the Asymmetric Information Initiative, aka "Investing and Lending" which generated $1.911 billion in revenues in Q1, the highest since Q1 2011. Still, the 22% top-line decline from Q1 2010 appears relentless. As for the only thing that matters to Goldman employees, implied full year comp dropped to $350,864 per average employee, the lowest in two years, even as the firm cut headcount from 33,300 to 32,400 in the quarter, the lowest number of employees since Q4 2009.
Summarizing the above: revenue breakdown.
And comp:
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Fuck you Buffet
Cramer told me to buy FSLR First Solar at $320
Scoreboard, bitchezzz!!!
Sir....I think the Muppets are starting to get ticked!
GS is down by 1.5% in early morning trading ...
Screw GS....just buy AAPL.
Biflation bites Wall Street. Yes.
actually this could be an outright DEflation...very rare indeed...and obviously unheard of in the post World War II "American Experience." With the Canadian Housing Bubble going para-bolic "The Ribbon" reeps its reward"
http://www.youtube.com/watch?v=rKsluh1YB24&feature=player_detailpage
I think Spain is working on an Asymmetric response to their financial problems.
http://www.bbc.co.uk/news/world-europe-17739204
YPF Repsol: Spain warns Argentina of strong response
The Spanish government has warned it will defend its interests as a row with Argentina over the nationalisation of oil company YPF intensifies. The majority stake in YPF is owned by Spanish oil firm Repsol, whose shares fell by 8% in early trading in Madrid.
Promising a "clear and overwhelming" response, Spain summoned the Argentine ambassador to express its concern.
Argentina nationalized A producer that refused to produce.
Its exposure big oil dont want. Racketeering and supply side hostagetaking is oils model.
Why bother with anything other than selling CDS? All reward no risk. If there is a major collapse, paying out CDS contracts will be the last thing these banks will worry about.
Lets see how fast it will take them to figure out a new product that they can come out with, that they will make a mint off of and fuck the investor once again, a year or 6 months...
Not sure it matters what they come up with. Clients are taking their ball and going home.
Where have the muppets gone?
Golden Sacks has to find more muppets, er clints.
TO THE BARRICADES! DEFEND GOLDMAN'S STOCK PRICE AT ALL COSTS YOU COMMIE-CAPITALISTS!
http://www.youtube.com/watch?v=5gz79ygcjBw&feature=player_detailpage
You can only sell so many $10 tasteless hamburgers
Obviously, government is good business.
FUCK GOLDFUCK SACKLICKERS!
How many losing days of trading did GS have?
Countries are in flames and
>>> Bove: Everything's 'Going Right' for Banking
They rig the game, and buy/have influenced people working for our government.
If they DIDN'T post a profit, it would be #fail #ftw
I'm looking out my window at Goldman Sachs headquarters and I see that they are flying two flags. One is the US flag and the other is the chinese flag. Does anyone know why? Is this in preparation for when they take down the US flag and just leave the chinese one up?