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Citizens Financial (CFG) Tops Q1 Earnings on High Revenues

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Have you been eager to see how Citizens Financial Group (CFG - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Providence, RI-based financial services company’s earnings release this morning:

An Earnings Beat

Citizens Financial came out with earnings per share of 78 cents, surpassing the Zacks Consensus Estimate of 76 cents. Higher revenues along with lower provisions were primarily responsible for the beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Citizens Financial depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged over the last seven days.

Notably, Citizens Financial has an impressive earnings surprise history. Before posting earnings beat in Q1, the company delivered positive surprises in all the trailing four quarters with an average of 9.7%.

Citizens Financial Group, Inc. Price and EPS Surprise

Revenue Came in Lower Than Expected

Citizens Financial posted total revenues of $1.46 billion for the quarter, lagging the Zacks Consensus Estimate of $1.47 billion. However, revenues improved 6% year over year.

Key Takeaways:

  • Net interest margin improved 20 basis points year over year to 3.16%.
  • Efficiency ratio improved to 60% from 62% in the prior year quarter. Generally, lower ratio is indicative of the improved efficiency.
  • Provision for credit losses decreased 19% year over year to $78 million.


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) 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 see the 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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