Have you been eager to see how Citigroup Inc. (C) 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 Miss
Citigroup came out with earnings per share of 6 cents, missing the Zacks Consensus Estimate of 9 cents.
Weak top line and legal and repositioning costs were primarily responsible for this earnings miss.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Citigroup depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved 30.8% lower over the last 30 days to 9 cents per share.
However, Citigroup have a decent earnings surprise history. Before posting an earnings miss in Q4, the company delivered positive surprises in the prior three quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.1% in the trailing four quarters.
Revenue Came In Lower Than Expected
Citigroup posted adjusted revenues of $17.81 billion, which missed the Zacks Consensus Estimate of $18.71 billion. Also, adjusted revenues compared unfavorably with the year-ago number of $17.94 billion.
Key Stats
Adjusted Net Income : $346 million , down from $2.6 billion in fourth quarter 2013.
Adjusted Expenses : $14.42 billion, up 21% year over year.
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. Now it all depends on what sense the just-released report makes to the analysts.
How the Market Reacted So Far
Following the earnings release, Citigroup shares were down 0.9% in the pre-trading session. This is in line 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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