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Citigroup (C) is scheduled to report 2Q 2014 earnings before the opening bell on Monday, July 14th.

Earnings Per Share Excluding Items: The current Street estimate is $1.08 (range $0.91 to $1.30).

Revenues: Analysts expect a decline of 7.6% y/y to $18.92 bln (range $18.58 bln to $19.69 bln).

By Craig Bowles


Citigroup (NYSE:C) is scheduled to report 2Q 2014 earnings before the opening bell on Monday, July 14th. The results are expected to come through at approximately 8:00 a.m. EST with a conference call webcast at Citigroup Investor Relations to follow at 10:00 a.m. Citigroup has the potential to impact the broader market indices, including the S&P Index Futures and corresponding ETFs. The earnings come after Friday's release from Wells Fargo (NYSE:WFC) and before Tuesday's report from JP Morgan Chase (NYSE:JPM).

Outliers & Strategy

Key measures:

  • Earnings Per Share Excluding Items: The current Street estimate is $1.08 (range $0.91 to $1.30). The estimate has been reduced from $1.23 three months ago. (Source: Yahoo! Finance) Citigroup typically provides two separate figures for Earnings Per Share - Earnings Per Share Excluding Items and Net Earnings Per Share. Earnings Per Share Excluding Items is typically the figure that compares with consensus estimates.
  • Revenues: Analysts expect a decline of 7.6% y/y to $18.92 bln (range $18.58 bln to $19.69 bln).
  • Citigroup shares have a price/book of 0.7 similar to the 5-year average and below the industry average of 1.1. The stock trades at 10.7x trailing earnings, above the 5-year average of 8.9x and compares to an industry average of 16.0x.
  • Insiders bought 32,707 shares over the last three months and 154,770 shares the last twelve months. Citigroup's board approved a $1.165 bln stock buyback in April after the Fed rejected a proposed a $6.4 bln buyback due to failing stress tests.
  • Citigroup shares have a 1-day average price change on earnings of 3.12%. Options are pricing in an implied move of 2.90% off earnings.

Recent News

  • 07/09: Morgan Stanley lowered their Q2 EPS estimate for Citigroup's to $0.40 from $1.10 following news suggesting a $7 billion investor fraud settlement -$4 billion hard-dollar (higher than the prior $1.3 billion estimate) and a $3 billion soft dollar, according to a post on
  • 06/24: Fed gives Citigroup and three other banks more time to resubmit capital distribution plans after problems in this year's round of stress tests, according to a post by Investors Daily.
  • 06/23: Citigroup agreed to sell its consumer banking business in Spain to Banco Popular Espanol SA, according to a post on
  • 06/23: Citigroup's provision for credit losses remains relatively high when compared to Bank of America and Wells Fargo, according to a post by
  • 06/20: Ned Kelly, chairman of Citigroup's investment bank, is leaving the company and will be replaced by Stephen Volk, a vice chairman. Kelly is 61 years old and was Citigroup's CFO for four months during the financial crisis.
  • 06/20: CEO Michael Corbat has said he will leave if Citigroup fails another stress test. Meanwhile, the U.S. is demanding a penalty of $10 billion for Citigroup's past issuance of flawed mortgage securities, according to a post by
  • 06/19: Blackrock and Pimco are suing Citigroup, Wells Fargo , HSBC (NYSE:HSBC) and BNY Mellon (NYSE:BK) over their trustee roles for more than 2,000 bonds between 2004 and 2008, according to a post on

Technical Review

Citigroup has fluctuated around $47 the last few months, so is still close to last year's second half $48 support. A one year chart of the big banks shows Citi has lagged in 2014 and would need to rally around 10% to reconnect. Last year's second half range could act as resistance up to $52.50 and limited support below $46 raises fears of an elevator shaft scenario. (Chart courtesy of


Citigroup shares have shown little movement amid continued legal settlements. The bank still has over $50 bln in deferred tax assets which can enhance future earnings, however. Given reduced estimates, Citigroup's stock could get a bounce if earnings come in above $1.17 and if revenue is closer to $19.3 bln.

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Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.