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New York-based Citigroup Inc. (C) is a globally diversified financial services holding company. Valued at $121.05 billion by market cap, the company provides a range of financial products and services, such as consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services, and wealth management, to consumers, corporations, governments, and institutions. The banking behemoth is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Friday, July 12.
Ahead of the event, analysts expect C to report a profit of $1.40 per share on a diluted basis, up 2.2% from $1.37 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. In the previous quarter, C’s total revenues, net of interest expense, declined 2% year over year to $21.10 billion but beat the consensus estimate of $20.30 billion. Its Q1 EPS decreased 28% year over year to $1.58 but surpassed the Wall Street estimates of $1.13. Higher expenses and credit costs were responsible for the year-over-year decline in its EPS.
For the full year, analysts expect C to report EPS of $5.86, up 3.9% from $5.64 in fiscal 2023.
C stock has outperformed the S&P 500’s ($SPX) 14.5% gains on a YTD basis, with shares up 23.4% during this period. The stock also outperformed the KBW Bank Invesco ETF’s (KBWB) 9.6% gains over the same time frame.
C’s overall performance can be attributed to several strategic initiatives it has undertaken to turn around the business. These initiatives include simplifying operations, divesting non-core assets, and cost-cutting measures. The bank expects to increase ROTCE to 11% and 12% this year and between 13% and 14% in 2025. It aims to streamline operations, eliminate redundancies, and boost efficiency across its global operations. The company is also on track to meet its $14.5 billion cost target.
The consensus opinion on Citigroup stock is bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and the remaining 10 analysts give a “Hold” rating. The average analyst price target for Citigroup is $66.45, indicating a potential upside of 4.7% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
