Goldman’s Profits Up 93%

Another blow-out quarter for Goldman Sachs (GS).

The famous Price/Earnings Ratio comes under frequent attack, but you can see from the chart Goldman’s stock has followed its earnings rather closely. Goldman just capped off the most profitable quarter in Wall Street history. The firm made $3.15 billion in the November quarter, nearly doubling what it made last year. Revenues soared 47% to $9.41 billion. All told, Goldman made $6.59 a share, which beat Wall Street’s consensus by 42 cents. Once again, the profits were driven by trading:

Fourth-quarter trading revenue rose 55 percent to $5.24 billion, accounting for more than half of the firm’s income. Revenue from fixed-income, currencies and commodities trading rose 58 percent to $3.1 billion, including the Accordia gain. Equities trading revenue jumped 52 percent to $2.13 billion.

By the way, if you’re interested in working for Goldman, you can take their “where do I fit in” quiz. Good luck!

Posted by Eddy Elfenbein on December 12th, 2006 at 10:00 am

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