Goldman Sachs (NYSE:GS) delivered a stronger-than-expected performance in the second quarter, surpassing analysts' estimates for both earnings per share (EPS) and revenue.
The company reported an EPS of $8.62, which was $0.26 higher than the analyst consensus of $8.36. Revenue for the quarter was also higher, coming in at $12.73 billion against the expected $12.35 billion.
The firm's second-quarter revenue represented a 17% increase from the same period last year, signaling robust year-on-year (YoY) growth. This rise was attributed to notable achievements in Global Banking & Markets and Asset & Wealth Management, with the latter achieving record quarterly management and other fees.
Additionally, the company's assets under supervision swelled by $86 billion during the quarter, reaching a new high of $2.93 trillion.
CEO David Solomon expressed satisfaction with the results, highlighting the strong growth in key sectors and the effective implementation of the firm's "One Goldman Sachs" approach.
Solomon's statement emphasized the firm's ability to leverage its full suite of services to deepen client relationships in a challenging yet improving market environment.
Despite the positive earnings and revenue beat, the stock saw a modest uptick of 0.85%, indicating that while investors reacted favorably to the news, the market response was measured.
Goldman Sachs also announced a dividend increase from $2.75 to $3.00 per common share, set to be distributed on September 27, 2024, to shareholders on record as of August 30, 2024. This move reflects the company's confidence in its financial stability and commitment to shareholder returns.
The firm's solid performance in the second quarter, coupled with strategic capital returns to shareholders, including $3.50 billion in common share repurchases and $929 million in dividends, underscores the strength of its financial position and the success of its diversified revenue streams.