Earnings Preview: Citigroup

Citigroup (C) is expected to report Q3 earnings before market open Thursday, Oct. 16, with a conference call scheduled for 10:00 am.

Guidance

Analysts are looking for EPS of (70c) on revenue of $21.34B. The consensus range for EPS is ($1.08) to (45c), while the consensus range for revenue is $18.52B to $26.78B, according to First Call.

Analyst View

Citigroup announced on September 29 that its Q3 net losses would be higher than its Q2 losses, but lower than its Q1 losses. The bank also said it expects to announce $2B of credit card losses for Q3 and $9B to $10B of credit costs. Citigroup is one of the nine banks in which the U.S. government is going to buy a stake.

On a negative note, Oppenheimer reduced its Q3 EPS estimate for the bank to (90c) from (36c) on Monday, citing deteriorating credit conditions. The firm also lowered its 2009 EPS estimate for the bank to ($1.70) from ($1.20). Oppenheimer maintained its Underperform rating on Citigroup.

After the bank apparently failed in its attempt to buy Wachovia (WB), investors may want to find out if Citigroup will pursue another large acquisition. 

Comments

[investor88:]

Citi share price down today means that results won't be inspiring at all, problems not over yet.

2008 Oct 15 10:52 AM