Goldman Sachs Crushes Records, but This Analyst Warns the Party Is Over

Goldman Sachs Group (NYSE:GS) posted second-quarter earnings per share of $20.98, beating its estimate of $15 by 40% and the Street consensus of $14.48 by 45%. Revenue climbed 39% year over year to $20.34 billion, about $4 billion above consensus. Goldman also generated a 23.5% return on equity during the quarter.

Citizens analysts Devin Ryan and Noah Katz said Goldman posted results well above expectations, driven by strength across investment banking, equities, fixed income trading and asset management. The brokerage noted that second-quarter earnings per share of $20.98 exceeded its $15 estimate by 40% and topped the Street consensus of $14.48 by 45%. Revenue climbed 39% year over year to $20.34 billion, about $4 billion above consensus. Goldman also generated a 23.5% return on equity during the quarter.

Citizens said the revenue outperformance came from Goldman’s core franchise rather than one-time gains. Record results in equities trading and financing, stronger fixed-income performance and improving investment banking activit...