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Citigroup Inc. (C), headquartered in New York, is a diversified financial service holding company that provides various financial product and services to consumers, corporations, governments, and institutions. With a market cap of $118 billion, the company’s services include investment banking, retail brokerage, corporate banking, and cash management products and services. The leading global bank is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Tuesday, Oct. 15.
Ahead of the event, analysts expect C to report a profit of $1.38 per share on a diluted basis, down 9.2% from $1.52 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect C to report EPS of $5.79, up 2.7% from $5.64 in fiscal 2023. Its EPS is expected to rise 23.5% year over year to $7.15 in fiscal 2025.
C stock has outperformed the S&P 500’s ($SPX) 34.4% gains over the past 52 weeks, with shares up 52.2% during this period. Similarly, it outshined the S&P 500 Financials Sector SPDR’s (XLF) 36.6% gains over the same time frame.
Citigroup has seen strong performance due to its restructuring efforts to streamline management layers, leading to better decision-making and client focus. The company recently partnered with Apollo Global Management, Inc. (APO) to establish a $25 billion private credit program focusing on North America with potential for expansion. The recent interest rate-cuts are expected to benefit Citigroup by improving asset quality and igniting loan demand. Moreover, investor optimism about Citigroup's potential for growth with improving market conditions and business optimization initiatives have also driven its performance.
On Jul. 12, C shares closed down more than 1% after reporting its Q2 results. Its EPS of $1.52 exceeded Wall Street expectations of $1.40. The company’s revenue, net of interest expense was $20.1 billion, exceeding Wall Street forecasts of $20 billion.
Analysts’ consensus opinion on C stock is reasonably 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 10 give a “Hold.” C’s average analyst price target is $70.48, indicating a potential upside of 12.6% from the current levels.
On the date of publication, Neha Panjwani 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.
