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Citizen Financial (CFG) Tops Q4 Earnings; Revenues Rise

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Have you been eager to see how Citizens Financial Group, Inc. (CFG - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Providence, Rhode Island-based financial services company’s earnings release this morning:

An Earnings Beat

Citizens Financial came out with earnings per share of 55 cents, beating the Zacks Consensus Estimate of 52 cents. Higher revenues were primarily responsible for the beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Citizens Financial remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at 52 cents over the last 7 days.

Notably, Citizens Financial has an impressive earnings surprise history. Before posting earnings beat in Q4, the company delivered positive surprises in three of the trailing four quarters with an average of 5.3%.
 

Revenue Came in Higher than Expected

Citizens Financial posted total revenues of $1.36 billion for the quarter, surpassing the Zacks Consensus Estimate of $1.33 billion. Further, revenues improved 10.6% year over year.

Key Takeaways:

  • Net income increased 27.6% year over year to $282 million, on an adjusted basis.
  • Net interest margin improved 13 basis points year over to 2.90%.
  • Efficiency ratio improved to 62% from 66% in the prior year quarter. Generally, lower ratio is indicative of the improved efficiency of the bank.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for Citizens Financial. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

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

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

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