Goldman Sachs EPS below expectations!

Goldman Sachs Group (GS.US) stock was down more than 3.5% after the publication of Q1 financial report. Currently GS.US is trading at $334 and is down 1.5%. 

Company net revenue was $12.2 billion compared to $12.8 billion expected. On the annual basis, revenue dropped 5.48%. Revenue from equity fell 6.92% YoY to $3.02 billion and revenue from FICC dropped as much as 16.89% YoY to $3.91 billion. Fixed-income net-revenue fell primarily due to lower net revenue in FICC and lower net revenues in currencies and commodities, partially offset by significantly higher interest-rate-product revenue and higher revenue in mortgages and credit products.

Earnings per share was $8.79 compared to the $10.76 one year ago, which is 18.31% lower. 

Goldman Sachs CEO, David Solomon said the company had a solid performance during the quarter despite the banking sector’s turbulence due to the company’s deeply rooted risk-management culture. He expects a significant pickup and deal making in the second half of the year. David Solomon is confident in the wake of the banking crisis. Goldman played a key role at the start of the crisis, as it was working on an equity raise on behalf of Silicon Valley Bank, which teed off the March tumult. Even so, Solomon emphasized that Goldman and the rest of the largest banks are in a solid position.

GS.US stock price was rejected from significant price level at $340. Correction from this level perfectly coincided with the bank's financial results which strengthen rejection. From a longer perspective, price is still in downtrend trading below 200 SMA. Recent price actions suggest that bulls are losing momentum, a bearish cross occurred on the MACD indicator. In the following days, prices may consolidate between $320 and $340, marked on the graph with green and red lines.