Goldman’s 30% Profit Gain Beats Forecasts

Goldman Sachs Group Inc. posted a 30% increase in earnings for its fiscal second quarter to $624 million, or $1.30 a share, well above the average forecast of $1.07 by analysts surveyed by First Call Corp. The results, the first for the 130-year-old investment bank since it became a public company last month, were boosted by Goldman’s ranking as the No. 1 underwriter of stocks in the quarter and the top advisor on mergers. Total net revenue, which includes interest income minus interest expense, rose 16%. Revenue from trading equities more than doubled to $618 million, helped by strong order activity, derivatives trading and arbitrage related to mergers, the securities firm said. A 17% gain in merger advisory fees offset a 5% decrease in overall underwriting, largely because of the weaker fixed-income business. Goldman’s shares fell $3 to close at $65 on the New York Stock Exchange. Some investors said the results weren’t enough to entice them to buy Goldman, which has traded at a premium to its closest rivals since it went public May 3.