INSTANT VIEW: Goldman Sachs earnings rise, beat forecast

NEW YORK (Reuters) - Goldman Sachs Group Inc reported a stronger than forecast 33 percent rise in quarterly earnings as a gain in trading outweighed a one-time charge to repay government loans.

Wall Street's largest surviving investment bank reported net income for common shareholders of $2.7 billion, or $4.93 a share, compared with a pro-forma $2.05 billion, or $4.58 a share a year earlier.

Stripping out extraordinary items, Goldman earned $4.93 a share, beating analysts' consensus forecast of $3.39, according to Reuters estimates.

The following is reaction from industry analysts and investors:

TERRY MORRIS, SENIOR VICE PRESIDENT AND SENIOR EQUITY MANAGER FOR NATIONAL PENN INVESTORS TRUST COMPANY IN READING, PENNSYLVANIA

"I saw this coming, or at least thought I did. It's a buy the rumor, sell the news kind of thing. They did print a good number but based on yesterday's action it was apparently all built into the stock, at least for now.

"So now the stock is selling off. Just goes to show that its all relative to the expectations that were embedded into the price of the stock at the time.

"This is all opposed to Johnson & Johnson, which beat expectations by only something like three cents but is trading a buck higher. They didn't beat expectations nearly as much as Goldman, but J&J is trading higher because the expectations weren't priced into the stock already.

"I would say that the reason futures pared their gains is because of Goldman. Goldman puts a cap on the financials today. But they were the leaders yesterday, so they deserve a break. But the fact that the stock isn't trading higher on such good news means the news is built in to the stock, so what's left to take them higher?"

MICHAEL HOLLAND, MONEY MANAGER, HOLLAND & CO, NEW YORK:

"Even though I was prepared for really good results, the magnitude of their success in trading I think is breathtaking.

"They are showing once again that they are the smartest guys in the room.

"What they have continued to do during the worst financial crisis in 25 years shows that they are the smartest guys in the room and, therefore, it doesn't necessarily translate to the other people who are in the room.

"There is no question that Lloyd Blankfein and his team have differentiated themselves from the rest of the financial community with results like these.

"It is a tribute to their managing risk people if they can continue to do that."

FRANCIS CAMPEAU, BROKER AT MF GLOBAL CANADA, IN MONTREAL: