Popular press is reporting on "strong results" from Goldman Sachs. There's a bit more to the story, though. Goldman was on a fiscal year that ended in November. Due to changes in the type of institution they are with respect to the federal government and regulators, they are now required to adopt the calendar year as their fiscal year. So their first quarter of fiscal year 2008 included dec 07, jan 08, & feb 08. Likewise their most recent "Q4" results were reported for sep-oct-nov 08. The numbers cited for their 1Q09 results are for jan-feb-mar 09. This leaves December 08 in an unusual position. December was not included in 4Q08 results, nor in 1Q09 results. And here's where media such as the BBC are completely dropping the ball.
What you wouldn't know, just reading the BBC article, is that Goldman also now did a little mini-results reporting just for December, and posted a big loss -- not as big as the profits for 1Q09, but still significant. Their 1st quarter earnings were $3.39/share, approximately double analysts estimates (wow! "better than expected!"). Their december-only losses, however, were $2.15/share. So the dec-mar period has them earning $1.24/share, lower than estimates for the jan-mar quarter. They get a partial free pass on December, and take advantage of it, which is a bit dodgy, eh? They can get away with it because the reporting on it is so slack.
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