Citigroup Inc (C)

[DiscoverGold]

Earnings Preview: Citigroup Inc. (NYSE: C)
By: 24/7 Wall St. | July 12, 2023

• No earnings reports of note are due out late Thursday, but Friday morning will be the unofficial kick-off for this earnings season, with five major U.S. financial institutions reporting quarterly results.

Citigroup

The fifth-largest U.S. bank (by market cap), Citigroup Inc. (NYSE: C) stock has added just 0.7% to its share price over the past 12 months. The bank surprised to the upside for both revenue and EPS in the March quarter and has beaten the Street revenue estimate for nine consecutive quarters. Citi’s share price has barely changed since the end of March, although there have been some ups and downs. Loan volumes are a concern going forward, as is a drop in M&A activity.

Of 24 brokerages covering the company, just 8 have a Buy or Strong Buy rating on the shares, and 15 have a Hold rating. At a current price of around $46.50, the upside potential based on a median price target of $50.00 is 7.5%. At the high price target of $84.00, the upside potential is about 80.6%.

Second-quarter revenue is forecast at $19.35 billion, down 9.8% sequentially and down 1.5% year over year. Adjusted EPS is forecast at $1.41, down 35.4% sequentially and down 38.7% year over year. For the full 2023 fiscal year, analysts are currently forecasting EPS of $5.97, down 16%, on revenue of $78.9 billion, up 4.7%.

Citigroup stock trades at a multiple of 7.8 times expected 2023 EPS, 7.3 times estimated 2024 earnings of $6.38, and 6 times estimated 2025 earnings of $7.76. The stock’s 52-week range is $40.01 to $54.56, and Citi pays an annual dividend of $2.04 (yield of 4.38%). Citi’s total return to shareholders for the past year was 5.06%.

Read Full Story »»»

DiscoverGold