CIT Group Earnings: Here’s Why Investors are Not Happy Now
CIT Group, Inc. (NYSE:CIT) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.34%.
CIT Group, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.81 in the quarter versus EPS of $-2.22 in the year-earlier quarter.
Revenue: Decreased 67.66% to $355.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: CIT Group, Inc. reported adjusted EPS income of $0.81 per share. By that measure, the company missed the mean analyst estimate of $0.89. It beat the average revenue estimate of $62.72 million.
Quoting Management: “Our results this quarter reflect our continued progress growing assets and improving profitability,” said John Thain, Chairman and Chief Executive Officer. “CIT Bank experienced solid asset growth and deposits now play a larger role in our diversified funding mix, accounting for a third of our total funding. We continue to maintain a strong balance sheet and capital ratios, and remain focused on improving our operating efficiencies and meeting our profitability targets.”
Key Stats (on next page)…
Revenue decreased 64.7% from $1.01 billion in the previous quarter. EPS decreased 0% from $0.81 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.87 to a profit $0.94. For the current year, the average estimate has moved up from a profit of $3.49 to a profit of $3.77 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)