Citigroup (NYSE:C) Issues Earnings Results

Citigroup (NYSE:C) posted its quarterly earnings data on Wednesday. The company reported $1.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.65 by $0.16, Briefing.com reports. The business had revenue of $19.87 billion during the quarter, compared to the consensus estimate of $20.99 billion. Citigroup had a return on equity of 7.91% and a net margin of 8.73%.Citigroup’s quarterly revenue was up 2.1% on a year-over-year basis. During the same period last year, the company earned $1.34 earnings per share.

Citigroup Trading Down 2.9%

C stock traded down $3.37 on Wednesday, hitting $112.94. 8,187,015 shares of the company were exchanged, compared to its average volume of 13,307,795. The stock has a market capitalization of $202.07 billion, a price-to-earnings ratio of 15.83, a price-to-earnings-growth ratio of 0.45 and a beta of 1.18. The business’s fifty day moving average is $109.78 and its two-hundred day moving average is $100.64. Citigroup has a twelve month low of $55.51 and a twelve month high of $124.17. The company has a debt-to-equity ratio of 1.62, a current ratio of 0.99 and a quick ratio of 0.99.

Citigroup Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Monday, February 2nd will be issued a $0.60 dividend. The ex-dividend date is Monday, February 2nd. This represents a $2.40 annualized dividend and a yield of 2.1%. Citigroup’s payout ratio is 33.71%.

Key Headlines Impacting Citigroup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Q4 adjusted EPS beat — Citigroup reported $1.81 non?GAAP EPS vs. consensus ~$1.77, a material improvement from $1.34 a year earlier, which supports earnings momentum. View Press Release
• Positive Sentiment: Shares popped in pre?market trading on the EPS beat and stronger fee/deal activity, indicating investor appetite for Citi’s improving underlying franchise. C Earnings: Citigroup Stock Pops on Q4 Earnings Beat
• Positive Sentiment: Board declared a $0.60 quarterly dividend (yield ~2.1%), which supports income investors and reduces downside from yield-seeking flows. Citigroup declares $0.60 dividend
• Neutral Sentiment: Corporate banking / dealmaking and services showed strength and group revenue was up ~2.1% year?over?year — a mixed operational picture (pockets of growth but not broad-based beat). Conference materials and the investor slide deck are available for details. View Slide Deck
• Negative Sentiment: $1.2B Russia?related charge knocked reported profit down ~13%, a sizable one?off that reduced headline profitability and complicates near?term comparisons. Citigroup profit hit by Russia charge as dealmaking and services shine
• Negative Sentiment: Revenue fell short of street expectations (~$19.87B vs. ~$20.7B consensus), which tempers the EPS beat and may limit upside to guidance or investor sentiment. Citigroup Non-GAAP EPS of $1.81 beats by $0.19, revenue of $19.87B misses by $580M
• Negative Sentiment: Management is cutting ~1,000 jobs as part of an ongoing restructuring — a cost?save that could boost margins over time but signals continued pressure on operations and execution risk. Citigroup is set to cut about 1,000 jobs, Bloomberg News reports
• Negative Sentiment: Legal overhang: the U.S. Supreme Court declined to hear Citi’s appeal in the Oceanografia fraud case, leaving a lawsuit that alleges >$1B losses unresolved — a material litigation risk. US Supreme Court rebuffs Citigroup appeal in lawsuit over Mexican oil company fraud

Analyst Ratings Changes

A number of analysts have weighed in on C shares. Morgan Stanley increased their price target on Citigroup from $129.00 to $134.00 and gave the stock an “overweight” rating in a report on Wednesday, October 15th. Wolfe Research reissued an “outperform” rating and set a $141.00 target price on shares of Citigroup in a research report on Wednesday, January 7th. Cowen restated a “hold” rating on shares of Citigroup in a research note on Wednesday, January 7th. Dbs Bank downgraded Citigroup from a “moderate buy” rating to a “hold” rating in a research report on Monday, September 22nd. Finally, JPMorgan Chase & Co. raised shares of Citigroup from a “neutral” rating to an “overweight” rating and raised their price target for the company from $107.00 to $124.00 in a report on Friday, December 12th. Fourteen equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $118.94.

Institutional Trading of Citigroup

Several large investors have recently added to or reduced their stakes in the stock. JPL Wealth Management LLC bought a new position in shares of Citigroup in the 3rd quarter worth about $50,000. Ramsey Quantitative Systems bought a new position in shares of Citigroup during the second quarter valued at approximately $68,000. Osterweis Capital Management Inc. raised its position in shares of Citigroup by 3,016.7% during the 2nd quarter. Osterweis Capital Management Inc. now owns 935 shares of the company’s stock worth $80,000 after purchasing an additional 905 shares during the period. Morse Asset Management Inc grew its stake in Citigroup by 442.7% during the 3rd quarter. Morse Asset Management Inc now owns 852 shares of the company’s stock worth $86,000 after buying an additional 695 shares during the last quarter. Finally, Turning Point Benefit Group Inc. acquired a new stake in Citigroup in the third quarter worth $104,000. 71.72% of the stock is currently owned by institutional investors and hedge funds.

Citigroup Company Profile

Citigroup Inc is a global financial services company headquartered in New York City with roots tracing back to the City Bank of New York, founded in 1812. The modern Citigroup was created through the 1998 merger of Citicorp and Travelers Group and has since operated as a diversified bank holding company that provides a broad range of banking and financial products and services to consumers, corporations, governments and institutions worldwide.

Citi’s principal businesses include retail and commercial banking, credit card and consumer lending products, wealth management and private banking, and a full suite of institutional services.