Goldman Outshines Forecasts

Goldman Sachs Group Inc. on Tuesday reported a 2.2 percent increase in fiscal fourth-quarter net income, bolstered by investment gains that apparently offset prickly market conditions. The Wall Street behemoth posted net income of $7.01 a share, clearly out swimming the $6.61 a share estimate that Thomson averaged from analysts’ forecasts.
 
But don’t think for a moment that all that glitters is a sign for better times ahead for the financial services sector. According to analysts, about 75 cents of the net gain in earnings per share came from sales of equity investments and electricity plants. That means Goldman’s clients aren’t necessarily trading stocks because of new-found faith in the economy. On the contrary, it points to the lack of faith Goldman has in the economy as it tries to fatten up in anticipation of what could be a rather fruitless period ahead.

 

Evan Pondel, Senior Associate, epondel@pondel.com
 
 

*Holiday Market Trading Hours

The New York Stock Exchange will close at 1 p.m. Eastern Standard Time on Monday, December 24, 2007 in observance of the Christmas Holiday, however, the Exchange will be open for normal trading on Monday, December 31, 2007.
 
The American Stock Exchange and Nasdaq will follow the same holiday trading schedule.

 

Laurie Berman, Senior Vice President, lberman@pondel.com