Citigroup Inc (NYSE:C)
Citigroup Earnings Results
On Thursday morning before the market opened, Citigroup ($C) announced fourth quarter earnings that came up short of expectations and sent shares slightly lower. The company announced $1.14 earnings per share on $17 billion in revenue while analysts were looking for $1.12 earnings per share on $17.3 billion in revenue. This is compared to $1.02 EPS for the same period ending last year. Currently analysts have an average price target of $64.36.
C Technicals
Looking at the daily chart above you will notice that shares were in a fairly strong uptrend dating back to the election date in early November. However, recent price action has broken the trend as prices dip below the 20-day and 50-day moving averages. Shares are beginning to become oversold on the daily chart so we could see a bounce back to test the 20-day moving average.
We should see support at $56 with stronger support at $50 and the 200-day moving average currently at $48.57. Look for resistance at the moving averages and at $60. Shares will likely be more volatile than normal and could present some great trading opportunities today. Check out these links for more information on Warrior Trading and the penny stock trading strategies we implement in their chat room!
CEO Comments
Citi CEO Michael Corbat said, “We had a strong finish to 2016, bringing momentum into this year. We drove revenue growth in our businesses and demonstrated strong expense discipline across the firm. We achieved a full year Citicorp efficiency ratio of 58% as we had targeted, while again increasing our loans and deposits. . .Our core businesses are beginning to produce the returns our investors expect and deserve. In 2016, we returned nearly $11 billion in capital to our shareholders. Even with this capital return, we ended the year with a Common Equity Tier 1 Capital ratio of 12.5%, 40 basis points higher than when we started the year, showing the capability of this franchise to consistently generate and return significant amounts of capital,” Mr. Corbat concluded.
Company Profile
Citigroup, Inc. is a global financial services holding company specializes in banking and financial solutions. It offers a range of products and services among individuals, corporations, governments and institutions such as savings, checking, online banking, individual retirements accounts, credit cards; personal, student, and commercial real estate loans, cash management services, home equity, and bill consolidation, as well as online banking services, cash management, transactions, trade, securities, and fund services. It operates through the following segments: Global Consumer Banking, Institutional Clients Group, and Corporate/Other.
The Global Consumer Banking segment consists of four geographical consumer banking businesses that provide traditional banking services to retail customers through retail banking, including commercial banking, and Citi-branded cards and Citi retail services. The Institutional Clients Group segment offers corporate, institutional, public sector and high-net-worth clients around the world with a full range of wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance and securities services. The Corporate/Other segment refers to administrative functions including finance, risk, human resources, legal and compliance, and others. The company was founded on October 8, 1998 and is headquartered in New York, NY.