Citigroup Reports Q2 Earnings: Buy, Sell or Hold?
Citigroup reiterated that it will be increasing its dividend by 6% in the third quarter.
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.”
Sign up for Kiplinger’s Free E-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
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Is Palantir Stock a Buy After Its Beat-And-Raise Quarter?
Palantir stock is rallying Tuesday after the data analytics firm beat Q2 earnings estimates and raised its full-year outlook. Here's what you need to know.
By Joey Solitro Published
-
New York Residents to Receive Child Tax Credit Checks in Mail
Tax Credits The Empire State is sending millions of dollars — find out why and if it applies to your family.
By Kate Schubel Published
-
Is Palantir Stock a Buy After Its Beat-And-Raise Quarter?
Palantir stock is rallying Tuesday after the data analytics firm beat Q2 earnings estimates and raised its full-year outlook. Here's what you need to know.
By Joey Solitro Published
-
Stock Market Today: Dow Dives 1,033 Points as Panic Selling Sets In
There were several factors at play in today's broad-market bashing, including recession worries and news Berkshire slashed its Apple stake.
By Karee Venema Published
-
Why Did Warren Buffett Slash His Stake in Apple Stock?
Warren Buffett's Berkshire Hathaway dumped Apple, its top stock, by almost half.
By Dan Burrows Published
-
CrowdStrike Fires Back at Delta: What to Know
CrowdStrike says Delta ignored its offers of assistance during the outage last month. Here's what you need to know.
By Joey Solitro Published
-
Kellanova Stock Surges on Potential Mars Takeover
Kellanova stock is rallying on news that Mars is reportedly in advanced talks to acquire the company. Here’s what you need to know.
By Joey Solitro Published
-
Here's Why Stocks Are Selling Off And What Investors Can Do
Several factors are amplifying a global stock market rout. Here we look at why it's happening and what investors can do to protect their portfolios.
By Karee Venema Published
-
Coinbase Sells Off Alongside Crypto. Here's Why
Coinbase Global stock is tumbling Monday as investors flee riskier assets such as cryptocurrency. Here's what you need to know.
By Joey Solitro Published
-
Jewelry Can Be an Investment. Here's How to Find It
Kiplinger explains what to watch out for in jewelry to invest in, how to find the goods, and how to have some fun with jewelry investments.
By Lisa Amand Published