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Goldman beats the Street
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June 20, 2000: 12:10 p.m. ET
Record 2Q revenue in advisory, underwriting and trading boosts profit
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NEW YORK (CNNfn) - Goldman Sachs Group Inc. said Tuesday record revenue from its financial advisory, underwriting and equities trading businesses helped its fiscal second-quarter earnings beat Wall Street estimates.
 The global investment banking and securities firm reported earnings for the quarter ended May 26 of $755 million, or $1.48 a diluted share, up from $624 million, or $1.30 a share, in the year-earlier period. First Call, which polls analysts for their predictions of company earnings, expected Goldman Sachs to earn $1.37 a share.
Like other investment banks, Goldman's profit in the latest quarter fell from the first quarter, when it earned $1.76 a share, due to higher interest rates and stormy equities markets. In fact, because of unfavorable market conditions, Merrill Lynch in May cut its second-quarter earnings estimates for Goldman to $1.30-to-$1.35 a share, down from its initial prediction of $1.47 a share.
Of its $8.2 billion in total revenue, Goldman (GS: Research, Estimates) said investment banking, which includes financial advice and underwriting, generated $1.6 billion while its equities-trading business generated $1.1 billion. Both figures were records.
Goldman also said it ranked first among investment banks in global initial public offerings, public stock offerings, and U.S. mergers and acquisitions in the latest quarter.
The investment bank also had its share of bad news in the latest quarter, as Japan's Ministry of Finance reportedly considered barring Goldman from future privatizations in that country, allegedly dismayed by Goldman's handling of various transactions, including the aborted Deutsche Bank-Dresdner Bank alliance in April.
Also in April, Goldman joined 16 other investment banks in paying fines to the U.S. government to settle charges of "yield burning," in which the brokerages allegedly overcharged clients for federal and municipal bonds.
A happier day for Goldman was May 4, 1999, when it made its initial public offering of 69 million shares at $53, or about $3.7 billion - the second-largest IPO in U.S. history. The firm had been private since its founding in 1869.
Goldman stock was up 1-7/16 to 93-1/16 in Tuesday morning trading. 
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