Proactive Investors - Goldman Sachs (NYSE:GS) reported first-quarter revenue Tuesday morning that missed expectations, putting the investment banking firm behind the eight-ball compared it its rivals.
The firm posted revenue of $12.22 billion, 5% lower year-over-year, which fell short of the $12.79 billion expected by analysts. Earnings dropped 18% to $8.79 per share, topping Street expectations of $8.10.
Shares of the New York-based firm tumbled nearly 3.5% to $327.43 in premarket trading.
There are two main problems for Goldman. First, compared to many of its investment banking counterparts, Goldman isn’t as diversified, taking in most of its revenue from Wall Street trading and investment banking.
However, revenue from fixed-income trading revenue was 17% lower year-over-year at $3.93 billion, $230 million short of a StreetAccount estimate. That’s despite the fact that rivals JPMorgan Chase (NYSE:JPM) and Citigroup (NYSE:C) reported higher-than-expected fixed-income trading numbers.
Goldman’s return on tangible equity was 12.6% on an annualized basis, well short of its long-term target of 15%-17%.
Second, Goldman’s attempt to launch a consumer banking arm largely failed. The firm has moved away from its Marcus consumer banking app, but it also reported a $470 million loss on the partial sale of Marcus loans.