http://www.theguardian.com/business/2016/jan/20/goldman-sachs-fourth-quarter-earnings-report-profits-slump
Wednesday, January 20, 2016
Despite falling profits, Goldman Sachs exceeds expectations
Due to civil suits dating back to 2005, Goldman Sachs recently announced that it would be paying ~$5 billion in settlements. That was the major factor in the firm's third straight quarter with falling profits, along with factors such as the plummeting oil prices. Despite the settlement and falling profits, however, Goldman Sachs exceeded analysts' expectations in revenue by $200 million. This could prove rather promising for Goldman, especially because the firm announced that, in 2015, it ranked first in the world in mergers and acquisitions. This can generate high returns in the future and contribute a possibly favorable 2016.
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This is a very interesting article! The entire article states nothing positive about Goldman Sachs. First, I would like to point out that Goldman Sachs did beat analysts’ predictions on revenue not profit. Just to be clear, I think revenue affects profit, but profit doesn’t affect revenue. So it’s actually quite plausible that profits are falling (due to higher costs as presented by the article) while revenues increase. I might have miss understood, but it sounded inversed in the summery. I think this article also brings to light the fact that even though Goldman came out of the mortgage crisis still standing, they are still paying for what they did nearly ten years later.
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