Citigroup Inc. Earnings Cheat Sheet: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component Citigroup Inc. (NYSE:C) reported net income above Wall Street’s expectations for the third quarter. Citigroup is a financial services holding company that provides corporations, governments, and consumers with a broad range of financial products and services.

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Citigroup Earnings Cheat Sheet for the Third Quarter

Results: Net income for the financial services company rose to $3.77 billion ($1.23 per share) vs. $2.17 billion (70 cents per share) in the same quarter a year earlier. This marks a rise of 73.9% from the year earlier quarter.

Revenue: Revenue was $20.83 billion last quarter.

Actual vs. Wall St. Expectations: C beat the mean analyst estimate of 81 cents per share. It beat the average revenue estimate of $19.59 billion.

Quoting Management: Vikram Pandit, Citi’s Chief Executive Officer, said, “Citi continues to navigate a challenging economic environment and delivered another quarter of solid operating results. We continued to manage our risk prudently while growing the businesses that are core to our strategy. We have reduced the size of Citi Holdings to 15% of our balance sheet and further improved our financial strength. We are very well positioned as we help our clients navigate the world’s current trends and key opportunities.”

“In addition, over the past few years we have significantly strengthened our retail partner cards business and it has earned $2.2 billion pre-tax through the first three quarters. After a careful review of the business, which took into account current trends in credit and technology, we have decided that it makes strategic sense to move retail partner cards and a vast majority of its assets from Citi Holdings into Citicorp. The transition will be completed by the end of this year.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 13 cents in the second quarter and by 10 cents in the first quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.08 per share to 88 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $3.83 per share, down from $4.11 ninety days ago.

Competitors to Watch: Bank of America Corp. (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), Morgan Stanley (NYSE:MS), Barclays PLC (NYSE:BCS), Goldman Sachs Group, Inc. (NYSE:GS), U.S. Bancorp (NYSE:USB), UBS AG (NYSE:UBS), Deutsche Bank AG (NYSE:DB), and Royal Bank of Scotland Group plc (NYSE:RBS).

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(Source: Xignite Financials)