Citi Shares Soar as Bank Surpasses Q4 Earnings Estimate
Citigroup (C) shares jumped more than 2% premarket Friday on the back of its latest quarterly results, which saw the company top the analyst consensus estimate. The bank reported Q4 adjusted EPS of $0.84, $0.75 better than the analyst estimate of $0.09, while revenue for the quarter came in at $17.4 billion versus the consensus estimate of $18.88 billion. Citi noted that its results were impacted by several notable items, including the expenses associated with the FDIC special assessment of approximately $1.7 billion pre-tax and a reserve build of $1.3 billion associated with transfer risk in Russia and Argentina.
Citigroup Beats Analyst Consensus with Q4 Adjusted EPS
Citigroup surprised analysts with its strong Q4 performance, beating the consensus estimate for adjusted earnings per share (EPS). Despite the impact of notable items such as the FDIC special assessment expenses and reserve build, Citigroup reported adjusted EPS of $0.84, surpassing the analyst estimate of $0.09. This positive result highlights the bank’s ability to navigate challenges and deliver solid financial performance.
Strong Q4 Performance Drives Citi Share Price Up 2%
Following the release of its strong Q4 results, Citigroup saw its share price rise by more than 2% in premarket trading. Investors reacted positively to the bank’s ability to surpass the earnings estimate and deliver solid financial performance. This increase in share price indicates market confidence in Citigroup’s ability to weather challenges and generate value for shareholders.
Citi Reports Q4 Revenue of $17.4B, Below Expected $18.88B
Despite exceeding the earnings estimate, Citigroup reported Q4 revenue of $17.4 billion, falling short of the expected $18.88 billion. The bank attributed this lower revenue to divestiture-related impacts and the pre-tax impact of the Argentina devaluation. While the revenue figure was below expectations, the strong earnings performance demonstrates Citigroup’s ability to maximize profitability and generate value from its operations.
Citi CEO Expects Turnaround in 2024 After Disappointing Q4
Citi CEO Jane Fraser acknowledged that the fourth quarter was disappointing due to the impact of notable items on the bank’s financial results. However, Fraser expressed optimism about the future, stating that 2024 will be a turning point for Citigroup. With a focus on simplifying the bank and executing its strategy, Fraser expects to see improved performance in the coming years. This statement reassures investors that Citigroup is actively addressing challenges and working towards a stronger financial position.
Analyst comment
Positive news: Citi Shares Soar as Bank Surpasses Q4 Earnings Estimate
As an analyst, I expect the market to react positively to the news, with continued upward momentum in Citi’s share price. The strong Q4 performance reflects the bank’s ability to navigate challenges and deliver solid financial results, instilling confidence in investors. This positive trend is expected to continue, indicating the bank’s potential for future growth and profitability.
