Citigroup Earnings: Here’s Why Shares are Up Now

Citigroup, Inc. (NYSE:C) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.09%.

Citigroup, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 25% to $1.25 in the quarter versus EPS of $1.00 in the year-earlier quarter.

Revenue: Decreased 15.33% to $20.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Citigroup, Inc. reported adjusted EPS income of $1.25 per share. By that measure, the company beat the mean analyst estimate of $1.18. It beat the average revenue estimate of $19.79 billion.

Quoting Management: Michael Corbat, Chief Executive Officer of Citi, said, “Our businesses performed well during the quarter and these results are well-balanced through our products and geographies, especially in the emerging markets, where growth is being challenged. We also continued to make progress in several critical areas. We reduced the earnings drag caused by Citi Holdings, where we saw the largest percentage reduction of assets since 2010. We again consumed a modest amount of DTA, bringing the total utilized to about $1.3 billion for the first half of the year. We increased our already strong capital levels, reaching an estimated Basel III Tier 1 Common ratio of 10%. Generating consistent and quality earnings is a key priority and this quarter met that goal.”

Key Stats (on next page)…

Revenue decreased 18.11% from $25.03 billion in the previous quarter. EPS increased 1.63% from $1.23 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.17 to a profit $1.16. For the current year, the average estimate has moved up from a profit of $4.61 to a profit of $4.73 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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