Shares of Citi (
) are leading the Financial sector lower Friday ahead of the
company's first-quarter earnings report on Monday morning. The
stock last traded at $33.31, down more than 3.8 percent from
Thursday's close, compared to a 1.7 percent decline in the
Financial Select Sector SPDR ETF (
Analysts are expecting Citi to post quarterly earnings of $1 per
share on sales of $19.85 billion. The bank reported earnings of
just 9 cents per share on sales of $19.7 billion during the same
quarter last year.
data from StreetInsider.com
, Citi has missed by about 2 percent on average over the last six
Shares of Citi are up nearly 30 percent since the beginning of
2012, but are down about 13 percent from the recent high set in mid
Bloomberg data shows 22 analyst firms rate shares of Citi at Buy,
five suggest to stay on the sidelines, and five recommend selling
the stock. The average price target on Citigroup shares sits at
During Citi's last quarter, the Fed released results of its latest
stress test which showed the bank was one of just four US banks
did not get clearance for the submitted capital
. While peers in the sector were announcing fresh buybacks and
boosting dividends, Citi said it will submit a revised plan to the
Fed later this year.
- Although the firm is somewhat optimistic on Citi over the long
term, JPMorgan noted the Fed's rejected capital plan removes a
likely key catalyst for the stock in 2012.
The firm recently boosted its first-quarter EPS estimate on Citi
from $1.08 to $1.15. Maintains a Neutral rating and $43.50 target
on the stock.
- Looking for earnings of $1.19 per share. The firm said its
estimate "reflects a meaningful q/q rebound in capital markets
revenue (particularly within FICC) and lower expenses, given the
lack of some one-timers this quarter vs. 4Q and lower investment
spend." Deutsche Bank warned this quarter will contain some
lumpiness amid a number of previously-disclosed sales. Excluding
special items related to trading, the firm said Citi's trading
revenue "should rebound sharply..."
Deutsche Bank maintains a Buy rating and $40 target.
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