This confirms just how hard it is to accurately forecast earnings for the top global banks: Goldman Sachs reported fully diluted earnings of $4.58 a share. Most analysts were estimating Goldman to report earnings in the $3.40 to $3.42 range. Wow! There were lots of positives that people might have, in sum, under-appreciated in the run-up to the release, including equity underwriting, asset management and prime brokerage operations. The company says assets from hedge fund clients rose significantly. And then there was that Goldman staple: a gain from principal investment of $725 million. All that offset the expected weakness in credit-related trading, which included a $775 million loss (about $500 million of which stemmed from hedges that didn't work). What's notable here is the lack of massive writeoffs that have plagued others, notably Lehman Brothers. Relatively, it remains the gold standard.

For more:
- here's the release

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