Thursday, January 21, 2010

Goldman beats by three dollars...stock up only one (GS)

Earlier this morning, Goldman Sachs reported q4 2009 earnings of $8.20 per share, versus the expected $5.20. Shares are up about 1% in premarket trading.

The improvement in full year 2009 results goes back a few quarters, when FICC (Fixed Income, Currency & Commodities) was going absolutely nuts thanks to government involvement.  Still, this was a great quarter and a great year for the firm.

In the earnings release, Goldman cites the lowest compensation ratio in its history as a public company, seeking to soothe the populist anger being whipped up so well by politicians.

As politicians float the idea of a new bank tax to "get our money back," as the president so artfully put it, they might consider the fact that Goldman paid back TARP funds to the taxpayer resulting in a 23% annualized return:

Copyright 2010 AlphaNinja

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