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Citi (C) Beats on Q3 Earnings Estimates, Revenues Down

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Have you been eager to see how Citigroup Inc. (C - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based money center bank’s earnings release this morning:

An Earnings Beat

Citigroup came out with earnings from continuing operations per share of $1.25, handily beating the Zacks Consensus Estimate of $1.16.  Results were primarily aided by lower expenses, partially offset by reduced revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Citigroup depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged at $1.16 over the last 7days.

However, Citigroup has a decent earnings surprise history. Before posting earnings beat in Q3, the company also delivered positive surprises in the prior four quarters.

CITIGROUP INC Price and EPS Surprise

 

CITIGROUP INC Price and EPS Surprise | CITIGROUP INC Quote

Overall, the company surpassed the Zacks Consensus Estimate by an average of 6.2% in the trailing four quarters.

Revenue Came in Higher Than Expected

Citigroup’s adjusted revenues of $17.76 billion outpaced the Zacks Consensus Estimate of $17.38 billion. However, revenues declined 4% year over year.

Key Takeaway

Adjusted Net Income stood at $3.84 billion, down 8% from the prior year quarter.

Operating expenses declined 2% year over year to $10.4 billion.

Revenues from fixed income markets and investment banking increased 35% and 15% on a year over year basis, respectively.

Net interest margin fell 8 basis points from the prior year quarter to 2.86%.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Citigroup. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here)

Check back later for our full write up on this Citigroup earnings report!

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