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. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.