4.13.2009

Goldman Sachs Reports Earnings Early

Goldman Sachs was expected to release earnings tomorrow morning before the open but decided to release after the bell today and will follow up with a conference call tomorrow morning.

Goldman Sachs (GS) reported net revenues of $9.43 billion and earnings of $1.81 billion for the first quarter, beating market expectations. Trading and Principal Investments were strong, up almost 40% from the first quarter of 2008. Trading and Principal Investments had significant losses just last quarter.

Compensation and benefits were 18% higher than the first quarter of 2008 which was attributed to their higher revenues. The report also states that employment levels decreased about 7% in the first quarter of 2009.

In a separate announcement, Goldman confirmed rumors of a $5 billion public offering which will be used (in addition to their current capital) to pay back the $10 billion in TARP funds (if the government will allow it). The bigger question is why issue more shares and dilute current shareholders when you are sitting on over $100 billion in cash in the bank? Perhaps that will come up on the call tomorrow...

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