Citigroup (C) stock is down more than 2% in early trading Friday despite beating top- and bottom-line expectations for its second quarter.
In the quarter ended June 30, Citigroup’s revenue increased 3.6% year-over-year to $20.1 billion, which it said was driven by growth across all businesses, particularly in Banking, U.S. Personal Banking and Markets. Its earnings per share (EPS) increased 14.3% to $1.52 from the year-ago period.
“Our results show the progress we are making in executing our strategy and the benefit of our diversified business model,” Citigroup CEO Jane Fraser said in a statement. “We achieved positive operating leverage with revenue up 4% and a 2% decline in expenses.”
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Citigroup Q2 earnings
The results beat analysts’ expectations. Wall Street was anticipating revenue of $20.07 billion and earnings of $1.39 per share, according to CNBC.
Citigroup reiterated that it will be increasing its dividend by 6% in the third quarter, which it first announced on June 28 after the Federal Reserve stress test process.
“The recent stress rests again showcased the strength of our balance sheet,” Fraser said. “Our CET1 ratio now stands at 13.6% and we are increasing our dividend by 6%.”
“We will continue to execute our transformation and our strategy so we can meet our medium-term targets and continue to further improve our returns over time,” Fraser concluded.
Citigroup also plans to repurchase $1 billion of shares in the current quarter after repurchasing $500 million in the first quarter and none in the second quarter.
JP Morgan Chase (JPM) and Wells Fargo (WFC) reported earnings this morning as well, as the earnings calendar for this season heats up.
JP Morgan reported revenue of $51 billion and earnings of $4.40 per share, topping expectations of revenue of $49.9 billion and earnings of $4.19 per share. Wells Fargo also topped estimates, with revenue of $20.7 billion and EPS of $1.33, versus expectations of revenue of $20.3 billion and earnings of $1.29 per share.
Is Citigroup stock a buy, sell or hold?
Wall Street is bullish on Warren Buffett holding. According to S&P Global Market Intelligence, the average analyst target price for Citigroup stock is $69.69, representing implied upside of more than 9% to current levels. Additionally, the consensus recommendation is a Buy.
Related Content
- Wells Fargo Stock Falls Despite Q2 Beat: Buy, Sell or Hold?
- Earnings Calendar and Analysis for This Week
- Analysts' Top S&P 500 Stocks to Buy Now
-
4 Black Friday Scams to Watch Out forThe deals are heating up, but so are the scams. Here's how to spot some of the most common Black Friday scams this holiday season.
-
Ramit Sethi Tells Us the Biggest Retirement Mistake You Can MakeThe MasterClass instructor, author and behavioral finance expert on what could be costing retirees their happiness.
-
Holidays Are a Rich Time to Talk Money With Young Adults: A Financial Adviser's Guide for ParentsThe most productive family financial conversations start with open-ended questions and a lot of listening. Don't let this opportunity pass you by.
-
How Women of Wealth Are Creating a New Model of Giving Through Family OfficesWomen who are inheriting wealth today are shifting from traditional philanthropy to creating sustainable systems to fund philanthropic gifts into perpetuity.
-
I'm a Financial Planner: This Retirement GPS Helps With Navigating Your Drawdown PhaseReady to retire? Here's how to swap your 'peak earnings' mindset for a 'preserve-plus-grow' approach instead of relying on the old, risky 4% rule.
-
Donating Stock Instead of Cash Is the 2-for-1 Deal You'll Love at Tax TimeGiving appreciated stock or using a donor-advised fund (DAF) this year would be smarter than writing a check to support your favorite causes. Here's why.
-
Traveling With Purpose: What Zambia and Zimbabwe Taught Us About Slowing DownDon't treat retirement trips like they're an exercise in ticking off boxes. Slowing down and letting adventure unfold can create more meaningful memories.
-
Investment Expert: Is Your Retirement Portfolio Too Late to the Profit Party?If you're following the usual retirement investment model, you could be missing out on a potential profit period that companies see in the run-up to their IPOs.
-
Losing Your Job? A Financial Planner's 6 Steps to Survive and ThriveWhether pink slips are just rumors at your company or layoffs have already landed, there are things you can do today to make the best of a tough situation.
-
Oil Prices vs Investor Returns: It's What's Beneath the Surface That CountsEngineering, geology and operating discipline can determine the success of oil and gas projects as much as the cost per barrel.
