Why Goldman Sachs Group Stock Slumped 5% Today

Meanwhile, Goldman Sachs in the first quarter has reported the adjusted earnings per share of $5.15, missing the analysts' estimates for the adjusted earnings per share of $5.31. Trading revenues in bonds, currencies and commodities was effectively flat in quarter while trading revenues for stocks were down 6 percent from a year earlier.

But that changed when Goldman Sachs (gs) reported first-quarter earnings that missed Wall Street's expectations Tuesday.

Bank of America said today that its trading revenue increased by almost 23 per cent in the first quarter to $4 billion, boosted by a 29 per cent jump in fees from fixed income trading.

Still, analysts had expected about $5.31 a share. Bank of America said earlier Tuesday that its trading revenue climbed, while JPMorgan Chase and Citigroup last week reported revenue from that business exceeded estimates. Overall the Goldman Sachs trading revenue declined 2.4% to $3.36 billion from a year earlier.

He explained that Goldman's clients traded less with the bank because markets were calmer and because it does not lend as much as competitors.

"It sounds like they had a tough time navigating.in 1Q", said Evercore ISI analyst Glenn Schorr.

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Until Tuesday, Goldman Sachs stock was arguably the poster child for the Trump Bump: During the stock market rally since the President was elected, the bank had contributed more to the rise of the Dow Jones industrial average than any other company. Bank of America reported a 17% increase in FICC revenue this quarter over the same period a year ago. Goldman's chief rival Morgan Stanley will report on Wednesday.

"The operating environment was mixed, with client activity challenged in certain market-making businesses, and a more attractive backdrop for underwriting in our investment-banking franchise", CEO Lloyd Blankfein said in the statement.

Net income applicable to common shareholders jumped to $2.16-billion (1.73 billion pounds) in the first quarter ended March 31, from $1.2-billion a year earlier.

Revenue during the quarter grew 26.63 percent to $8,026 million from $6,338 million in the previous year period.

Revenues from investment banking for the quarter came in at $1.7bn, up 16 per cent year-on-year and 15 per cent quarter-on-quarter.