Goldman Sachs Group, Inc. (NYSE: GS) reported first-quarter earnings that missed analysts’ estimate, sending its share down more than 4 percent in the early trading.
The bank posted lower-than-expected trading revenue in the first quarter. Revenue from fixed-income trading was little changed from a year earlier at $1.69 billion as the company suffered from weaker demand in commodities and currencies, the New York-based company said Tuesday in a statement.
The company said profit rose to $5.15 per share from $2.68 a year earlier, but still missing analyst forecasts of $5.15 per share, according to Thomson Reuters. Revenue rose 27 percent to $8.03 billion in the first quarter, also missing analysts’ estimate of $8.446 billion. This is the first time Goldman reported a miss on earnings since the fourth quarter of 2015.
"The operating environment was mixed, with client activity challenged in certain market-making businesses and a more attractive backdrop for underwriting in our investment banking franchise," Lloyd C. Blankfein, chairman and chief executive officer of Goldman Sachs, said in a release.
This came after its rivals continued to reported better-than-expected revenue in trading. Bank of America Corp. posted higher trading revenue on Tuesday. While JPMorgan Chase & Co. and Citigroup Inc. also reported similar results on trading.
Goldman’s shares fell as much as 4 percent to $217.13 in the early trading in New York.