Highlights From the Citigroup Earnings Call
Source: iStock

Citigroup Stock Falls Despite Strong Q3 Earnings Results


Oct. 14 2020, Updated 9:48 a.m. ET

On Oct. 13, Citigroup stock fell 4.8 percent after the company reported its third-quarter earnings results. The company's third-quarter revenue and earnings beat Wall Street analysts’ average estimates. However, Citigroup’s net profit fell more than 30 percent year-over-year as it set aside more money for potential loan losses.

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When did Citigroup report its earnings?

Citigroup released its third-quarter 2020 earnings results on Oct. 13 before the market opened, and held its earnings conference call on the same day at 10:00 a.m. ET.

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Citigroup’s earnings report highlights

In the third quarter, Citigroup reported EPS of $1.40, compared with $2.07 in the third quarter of 2019. The EPS beat analysts’ average estimate of $0.93. Citigroup generated sales of $17.3 billion in the third quarter, which was 7 percent lower than in the third quarter of 2019. The company beat analysts’ average sales estimate of $17.2 billion.

In a press release, Citigroup CEO Michael Corbat said, “We continue to navigate the effects of the COVID-19 pandemic extremely well. Credit costs have stabilized; deposits continued to increase.” In the third quarter, Citigroup set aside $2.26 billion for potential loan losses amid uncertainty due to the coronavirus pandemic. The company set aside more than $7 billion in each of the previous two quarters.

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What is Citigroup’s stock price today?

Citigroup stock trades on the NYSE under the ticker symbol “C.” The stock was up about 0.6 percent at $43.94 in premarket trading today as of 4:46 a.m. ET. The stock fell 4.8 percent yesterday and closed at $43.68 with a market capitalization of $90.9 billion.

Citigroup stock has fallen by 2.6 percent in the last five days and 37.2 percent in the last year. The stock is trading 47.4 percent below its 52-week high of $83.11 and 36.5 percent above its 52-week low of $32.

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What is Citigroup’s dividend yield?

As of Oct. 13, Citigroup’s dividend yield was 4.67 percent. Currently, the company pays an annual dividend of $2.04 per share. Citigroup has increased its dividend for the last five years by an average of 66 percent each year.

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What is Citigroup’s stock forecast?

Currently, Wall Street analysts' stock price forecast for Citigroup is $65.40, which suggests a 49.7 percent upside. The highest target price of $100 indicates a 52.9 percent upside, while the lowest target price of $43.60 indicates a 0.2 percent downside. Among the 29 analysts covering Citigroup, 17 suggest "buy," ten suggest "hold," and two suggest "sell."

Citigroup investor relations

Investors and financial analysts can access the webcast and presentation material on the investor relations section of the company’s website.


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