Citigroup Inc. (NYSE:C) shares are expected to rally as it releases its fourth-quarter earnings report prior to Tuesday’s market open. Aside from its earnings numbers, investors would also be taking a closer look on any hint of the company’s plans for this year as it the Republican Senate pushes for a major corporate tax reform this year.
Previous Earnings Report
The American financial firm last reported its previous quarterly earnings report back in October. Shares of Citigroup then traded higher following a positive third-quarter earnings report from the company. Citigroup had earnings of $1.42 per share for the quarter beating most estimates of $1.32 per share in earnings.
For the three months that ended in September 2017, the company posted a 2% growth in its revenue to $18.17 billion beating most analysts expectations of $17.89 billion. Their revenue was also higher from the same period in 2016 of $17.76 billion.
Citigroup also posted total profits of $4.12 billion representing a growth of 8% from the same period a year ago where the company delivered $3.84 billion in profits. The company then announced that the growth of the company, as well as the strong quarter, was due to client-led growth pushing their revenue from their products and investments higher as well as the growth which the company was able to record from consumer and institutional business loans supported by their expense management for the quarter.
Fourth Quarter Expectations
Citigroup is expected to post earnings of $1.19 per share representing a 4.4% growth while their revenue is expected to come in at $17.09 representing a 0.5% growth.
Most investors are expecting to get a hint on the effect of a huge one-time tax charge on the earnings of the company which will be released on Tuesday morning. Last month, Citigroup stated that it expects a charge worth $20 billion to its fourth-quarter earnings due to the massive tax overhaul.
Financial stocks are mostly expected to post upbeat earnings including Citigroup due to the signs of an improving economy as well as rising interest rate hikes supported by an overall positive outlook for the financial sector.