Goldman, Bear Stearns Post Profit Declines
Goldman Sachs Group Inc. and Bear Stearns Cos. posted steep quarterly profit declines as investment banking fees and trading revenues fell, and said the Sept. 11 terrorist attacks will dampen results in the near term.
Goldman said its profit fell 43% to $468 million, or 87 cents a share, for its fiscal quarter ended Aug. 31, compared with the 81-cent average estimate of analysts polled by Thomson Financial/First Call. Net revenue tumbled 19% to $3.66 billion. Investment banking revenue fell 17%, mostly because of fewer equity sales, but was up 39% from the previous quarter as advisory revenue nearly doubled.
Bear Stearns said net income fell 26% to $135 million, or 95 cents a share, but beat analyst expectations of 90 cents. Bear Stearns’ investment banking revenue fell only 3%, but equity trading revenue fell 32%.
Goldman shares fell 18 cents to $69.85, and Bear Stearns shares rose 28 cents to $47.30, both on the New York Stock Exchange.
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