Citigroup Inc. Earnings: Falls Below Expectations as Net Income Declines

S&P 500 (NYSE:SPY) component Citigroup Inc. (NYSE:C) reported its results for the fourth 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 Fourth Quarter.

Results: Net income for the financial services company fell to $1.17 billion (38 cents per share) vs. $1.31 billion (43 cents per share) a year earlier. This is a decline of 11% from the year earlier quarter.

Revenue: Revenue was $17.17 billion last quarter.

Actual vs. Wall St. Expectations: C fell short of the mean analyst estimate of 50 cents per share. It fell short of the average revenue estimate of $18.54 billion.

Quoting Management: Vikram Pandit, Citi’s Chief Executive Officer, said, “Overall, we made solid progress in 2011. We increased our net income to $11.3 billion, up 6% from the previous year, and reached key benchmarks in our consumer businesses, showing our strategy is achieving results. Clearly, the macro environment has impacted the capital markets and we will continue to right-size our businesses to match the environment. With Citi Holdings assets at 12% after the transfer of retail partner cards to Citicorp, we are increasingly focused on driving earnings through our core franchise and beginning to return capital to our shareholders this year.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 42 cents, and in the second quarter, it was ahead by 13 cents.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is $1.04 per share, down from $1.09 ninety days ago. For the fiscal year, the average estimate has moved down from $4.08 a share to $3.83 over the last sixty days.

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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com