Markets
CFG

Citizen Financial (CFG) Q3 Earnings Beat on Higher Revenues

Have you been eager to see how Citizens Financial Group, Inc.CFG performed in Q3 in comparison with the market expectations? Let's quickly scan through the key facts from this Providence, Rhode Island-based financial services company's earnings release this morning:

Earnings Beat

Citizens Financial came out with adjusted earnings per share of 52 cents, beating the Zacks Consensus Estimate of 49 cents.

Better-than-expected results were driven by higher revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Citizens Financial remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at 49 cents over the last 7 days.

Notably, Citizens Financial has a decent earnings surprise history. Before posting earnings beat in Q3, the company also delivered an average earnings surprise of 4.36% over the trailing four quarters.

CITIZENS FIN GP Price and EPS Surprise

CITIZENS FIN GP Price and EPS Surprise | CITIZENS FIN GP Quote

Revenue Came in Higher than Expected

Citizens Financial posted total revenues of $1,380 million, surpassing the Zacks Consensus Estimate of $1,327 million. Further, revenues improved 14% year over year.

Key Takeaways:

Adjusted Net income increased 27% year over year to $290 million.

Net interest margin improved 8 basis points year over to 2.84%.

Efficiency ratio declined to 63% in third-quarter 2016 from 66% in the prior year quarter. Generally, lower ratio is indicative of the improved efficiency of the bank.

Pursuant to 2016 capital plan, the company initiated their first open-market share-repurchase program since becoming a fully independent company. During the quarter the company repurchased 11 million shares of common stock, thereby, returning $313 million to shareholders including common dividends.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Citizens Financial. 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.

(You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .)

Check back later for our full write up on this Citizens Financial earnings report!

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CITIZENS FIN GP (CFG): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CFG

Other Topics

Earnings Investing Stocks

Latest Markets Videos