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
- 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
-
I'm a Financial Planner: Here Are Some Long-Term Care Insurance Tips for Every AgeStrategies include adding riders to life insurance for younger individuals and considering hybrid or traditional long-term care policies for those in their mid-50s and 60s.
-
Engineering Reliable Retirement Income in 2025: An Expert GuideFor dependable income, consider using a bucket strategy and annuities in tandem to promote structure, flexibility and peace of mind.
-
I'm a Financial Planner: Here Are Some Long-Term Care Insurance Tips for Every Age
Strategies include adding riders to life insurance for younger individuals and considering hybrid or traditional long-term care policies for those in their mid-50s and 60s.
-
Engineering Reliable Retirement Income in 2025: An Expert Guide
For dependable income, consider using a bucket strategy and annuities in tandem to promote structure, flexibility and peace of mind.
-
Crazy Markets Shouldn't Derail Your Retirement if You Follow This Financial Pro's PlanBeing nervous about retiring in a volatile market is a red flag that you're relying too heavily on your investment portfolio, rather than a comprehensive plan.
-
Stock Market Today: Solid Signals Lift Stocks Despite Tariff NoiseMarkets are whistling over the White House in an ongoing display of corporate America's enduring ability to survive and advance.
-
Dividend Increases: 7 Stocks With Rising PayoutsWhile dividend growth has been slowing, certain stocks have raised their dividend payouts. These are some selections.
-
Key to Financial Peace of Mind: Think 'What's Next?' Rather Than 'What If?'Even if you've hit your magic number for retirement, it's hard to stop worrying about money. Giving it a clear purpose is one way to reduce financial anxiety.
-
Three Estate Planning Documents a Business Owner Can't Afford to SkipA business owner's estate plan should protect the company and its employees as well as the entrepreneur's heirs. These three documents are critical.
-
Stock Market Today: Trump's Copper Comments Cause a StirMarkets remain resilient and monetary policy makers stand fast against a rising tide of new terms of trade, including around copper.
