This earnings season is one of the most highly-anticipated in recent years. The recent rally in equity markets is reliant on companies coming in at expectations or above. Over the coming weeks, companies will report on their balance sheets.
Goldman Sachs ( ) and Bank of America ( ) reported earnings yesterday, both beating analyst’s forecasts overall.
Goldman Sachs reported earnings on Tuesday which beat Wall Street’s expectations, but shares dipped on the back of lagging bond trading.
The banking giant took in $3.95 profit per share in the second quarter, beating forecasts of $3.39. The tycoon’s revenues beat expectations of $7.52 billion with $7.89 billion.
One of the most criticised facets of Goldman Sachs, its investing and lending process, saw a 42% rise.
Bank of America
Bank of America, the second biggest bank in America, also smashed expectations on Tuesday.
The bank’s stock has ploughed ahead of its peers in recent months. Over the past 6 months, the stock has risen 6.14%
Although expectations were beat, the stock fell 0.48% in the wake of the report. Here, the devil is in the detail, while revenues climbed there is still a 14% year-over-year decline. The bank attributed the slump to “weaker performance in rates and emerging markets relative to a strong year-ago quarter.”
By Adrienne Murphy —— Chief Market Analyst, Avatrade