Earnings Preview: CIT Group

CIT Group (CIT) is expected to report Q3 earnings before market open Thursday, October 16, with a conference call scheduled for 9:00 am.

Guidance

Analysts are looking for EPS of 20c on revenue of $536M. The consensus range for EPS is 14c to 29c, while the consensus range for revenue is $511.40M to $554M, according to First Call. The commercial financing company Tuesday declared a 10c per share quarterly dividend, and filed to sell $8M of common shares.

Analyst Views

The stock gained Tuesday on rumors that the company would be eligible for the government's guarantee of bank debt issued over the next three years. However, Keefe Bruyette issued a note claiming that CIT would not be able to participate in this government program. Investors will listen for clarification on this issue tomorrow. Last month, Buckingham issued an optimistic note about CIT. The firm said the lender has limited need for additional funding over the next year and that the company's shares should recover. The firm has an Accumulate rating on the stock.

Comments

[James Wilson:]

I agree. Many business in small cities will depend on Citi for short term loans to keep inventory and but supplies.
I wish the short sellers would get a life and build something instead of trying to crash things.

2008 Oct 15 02:41 PM