Jim Cramer says Goldman Sachs is “number one in everything” after a blowout quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Jul 13, 2021
  • Goldman Sachs beats Wall Street estimates by a significant margin in Q2.
  • CEO David Solomon expresses concern over delta-driven COVID resurgence.
  • Jim Cramer discusses Goldman Sachs' quarterly earnings report on CNBC.

The Goldman Sachs Group Inc (NYSE: GS) reports its financial results for the second quarter on Tuesday that beat Wall Street estimates by a significant margin. Shares of the legacy investment bank were still down more than 2% on Tuesday morning.

Financial performance

Goldman Sachs reported $5.35 billion of net income in the second quarter that translates to $15.02 per share. In the comparable quarter of last year, its net income was capped at $197 million or 53 cents per share.

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The investment bank’s revenue came in at $15.39 billion that represents a 15.7% annualised growth. According to FactSet, experts had forecast $12.31 billion of revenue and $10.25 of EPS. The news comes more than a month after Goldman Sachs said it was doubling its real estate investments in Japan.

Revenue from business segments and dividend

Other prominent figures in Goldman Sachs’ earnings report on Tuesday include a 43.4% decline in market-making revenue, a 45% decline in revenue from fixed income, currency and commodities, and a 12% decline in equities revenue.

Investment banking, investment management, and equity underwriting revenues climbed by 26.2%, 16.5%, and 17.6%, respectively. All segments reported figures that topped estimates.

Goldman Sachs declared $2.00 per share of a quarterly dividend versus $1.25 per share last year. On the earnings call, CEO David Solomon said he was concerned about the new delta variant and COVID resurgence at large.  

Jim Cramer’s remarks on CNBC’s “Squawk Box”

Commenting on the earnings report, Mad Money host Jim Cramer said CNBC’s “Squawk Box”

“Goldman is just a blowout. They are number one in everything now. They had a really amazing quarter with investment banking, trading was good, took a lot of market share, wealth management is incredibly strong. I think this was really an excellent quarter by Goldman because it’s up against some very difficult comparisons.”

Cramer also highlighted that the private equity gains that critics have been taking for granted as a one-time story, might not be a one-off thing after all, and it’s just that “the company is doing really well”. On CNBC’s “Squawk on the Street”, the Mad Money host also said that Apple Card was starting to move the needle.

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