Goldman Sachs shares jump as earnings blow past the Street on the best trading results in years

The bank generated $2.42 billion in profit, or $6.26 a share, according to a press release, crushing the $3.78 a share estimate of analysts surveyed by Refinitiv.

Revenue of $13.3 billion was more than $3.5 billion higher than the estimate,  fueled by strong results in its trading and investment banking divisions, which made up three-quarters of the firm’s revenue in the period.

Goldman Sachs on Wednesday reported blowout second-quarter earnings as its reliance on trading and investment banking paid off amid the market turbulence caused by the coronavirus pandemic.

The bank generated $2.42 billion in profit, or $6.26 a share, according to a press release, crushing the $3.78 a share estimate of analysts surveyed by Refinitiv. It was the New York-based bank’s biggest earnings outperformance in nearly a decade. Revenue of $13.3 billion was more than $3.5 billion higher than the estimate,  fueled by strong results in its trading and investment banking divisions, which made up three-quarters of the firm’s revenue in the period. 

The firm also said it set aside another $1.59 billion for potential credit losses due to the coronavirus.

Goldman shares jumped 4.6% in premarket trading.

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