Citigroup to report Q3 results

Citigroup will report its third-quarter earnings before the market opens on Tuesday 14 October. The consensus is for revenue of $19.03 billion and earnings per share of $1.13.

Man sitting by Citibank logo
Source: Bloomberg

Citigroup Inc is trading at $51.24. The share price is up 9% since the company posted its second-quarter figures in July, in which revenue came in at $19.37 billion and EPS at $1.24 — analysts were expecting $18.81 and $1.05 respectively.

The revenue and EPS may have exceeded estimates but the bank was hit by a one-off legal settlement of $7 billion in relation to mortgage-backed securities. Putting aside the large legal bill, the fundamentals of the business are sound, new loans are continuing to grow and the bank’s capital position has been strengthened. Although Citigroup’s revenues derived from trading stocks and bonds declined, this is a common theme among global finance houses.

Equity analysts are very bullish on the bank. Out of the 35 recommendations, 21 are buys, 11 are holds and the remaining three are sells.

The 100-week moving average is providing support at $47.71. If trading revenue picks up and there are no write-downs relating to toxic assets the stock could target $53.75. 

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