Goldman Sachs Group (NYSE: GS) and Lehman Brothers Holdings (NYSE: LEH) both reported that their earnings were way down -- but they beat estimates of 61% and 63% declines respectively. Goldman's earnings fell "a mere" 53% while Lehman's fell "only" 57%.

According to the Wall Street Journal, Goldman said its fiscal first-quarter net income dropped 53% on $2 billion in losses on residential mortgages, credit products and investments, interrupting 10 quarters in a row of higher year-over-year earnings. Results still topped the expectations of Wall Street analysts, however.

It quoted Lloyd Blankfein CEO as saying: "Market conditions are clearly very difficult. But we saw strong customer activity across many of our franchise businesses in the first quarter. Although market conditions present many challenges at the moment, they also offer considerable opportunities."

Lehman Brothers reported a 57% drop in fiscal first-quarter net income amid weakness in its fixed-income business, but like Goldman its results also topped analysts' expectations. Chairman and Chief Executive Officer Richard S. Fuld Jr. said, "our results reflect the value of our continued commitment to building a diversified platform and our focus on managing risk and maintaining a strong capital and liquidity position."

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.