Goldman Sachs Reports Record Quarterly Profit

Goldman Sachs Group Inc., buoyed by revenue from merchant banking and record trading and money-management fees, reported the largest quarterly profit in the history of the securities industry Tuesday and said the outlook on Wall Street was as favorable as it had ever been.

Goldman stock rocketed $8.70, or 6.2%, to $149.42 -- its biggest one-day advance in three years.

The company said net income soared 64% in its fiscal first quarter to $2.48 billion, or $5.08 a share, up from $1.51 billion, or $2.94, in the year-earlier period. Revenue climbed to $10.3 billion, also a record.

Earnings in the three months ended Feb. 24 were greater than Goldman netted in all of fiscal 2002 and topped the highest analyst estimate by more than 60%.

“It all went right; that’s all you can say with a number like this,” said Anton Schutz, who helps manage $275 million at Mendon Capital Advisors Corp.

Goldman also raised its quarterly dividend to 35 cents a share from 25 cents.