INSTANT VIEW: Goldman Sachs earnings beat forecasts, share fall

NEW YORK (Reuters) - Goldman Sachs Group Inc on Thursday reported that its quarterly profit nearly quadrupled from the most closely comparable quarter a year ago, beating expectations.

Goldman reported net income applicable to common shareholders rose to $3.028 billion, or $5.25 a share, compared with $810 million, or $1.81 a share, in last year's quarter ended August 29.

Goldman changed to a conventional earnings reporting calendar this year.

The former investment bank's shares were down 2.8 percent in premarket electronic trading.

The following is reaction from industry analysts and investors:

ARIFA SHEIKH-USMANI, EQUITY TRADER AT SPREADEX, SAINT ALBANS, BRITAIN

"They are better than expected but there was talk of them coming in at $6, so that's why they have sold off a bit after the figures. It's a good result but the market will be a touch disappointed because JPMorgan flew through expectations."

HEINZ-GERD SONNENSCHEIN, EQUITY STRATEGIST AT POSTBANK, BONN

"At first sight, the numbers look really strong, not only regarding EPS, but also in light of the rate of return on equity. They have made money where it was expected, mainly in the investment banking business."

RUPERT ARMITAGE, DIRECTOR AT SHORE CAPITAL STOCKBROKERS, LONDON

"There was all sorts of rumors flying around that the results were going to be even stronger than consensus, so the initial reaction is that they've slightly disappointed despite beating estimates significantly."

"People were talking of earnings coming at $6 a share, while analysts forecast $4.25 and results came in a $5.25. They were still 25 percent out but they're rarely that far out. I think people have just been getting a little bit ahead of themselves based on the market performance over the last quarter."

MICHAEL HOLLAND, PRESIDENT OF HOLLAND & CO IN NEW YORK

"Once again they have shown why they deserve their reputation as the top of the group, as the industry leader not only in performance, but outperforming expectations.

"The most important was the revenue (line). That $12.3 billion is a big number.

"What Goldman is saying is that they have seen improvements in several of their business, so I think even though the majority of their competitors don't perform the way they do, the improvement in the businesses is something one can look for in the coming reports of their competitors."

(Reporting by Juan Lagorio in New York, Harpreet Bhal and David Brett in London, and Christoph Steitz in Frankfurt )