Have you been eager to see how Citigroup (C - Free Report) performed in Q4 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 adjusted earnings per share of $1.61, surpassing the Zacks Consensus Estimate of $1.55. Further, the figure compared favorably with adjusted earnings of $1.28 in the prior-year quarter. Improvement in earnings was primarily driven by expense management.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Citigroup depicted pessimism prior to the earnings release. The Zacks Consensus Estimate was revised 1.9% downward over the last seven days.
Also, Citigroup has an impressive earnings surprise history. Before posting earnings beat in Q4, the company also delivered positive surprises in the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 5.48% in the trailing four quarters.
Revenue Came In Lower than Expected
Citigroup’s revenues of $17.1 billion missed the Zacks Consensus Estimate of $17.5 billion. Moreover, revenues decreased 2% year over year.
- Adjusted net Income stood at $4.2 billion, up 14% from the prior year quarter.
- Cost of credit declined 7% year over year to $1.9 billion.
- Fixed income markets revenues declined 21% year over year to $1.9 billion
- Equity markets revenues of $668 million surged 18% from the prior-year quarter.
- Returned $5.8 billion to shareholders as common stock repurchases and dividends during the quarter.
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. 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.)
How the Market Reacted So Far
Following the earnings release, Citigroup shares were down around 1% in the pre-trading session. This is in contrary to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have not considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this Citigroup earnings report!
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