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Julie Young
Articles (1220) 

Citigroup, Wells Fargo Meet Earnings Expectations

Financial sector is trading flat

July 15, 2016 | About:

Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) continued the positive earnings momentum for banks on Friday with both companies achieving earnings estimates.

Citigroup

Citigroup reported second quarter revenue of $17.55 billion, which beat analysts’ average estimate by $80 million. While revenue did beat estimates, total sales were down 9.9% year over year. Earnings also beat estimates at $1.24, 14 cents above analysts’ average estimate. For the quarter, earnings per share were down 14% from the comparable quarter.

In the second quarter, Citicorp reported revenue of $16.7 million, down 5% from the comparable quarter. Citi holdings reported revenue of $843 million which was down 57% from the comparable quarter.

Revenue for Citicorp was down in both of its main segments. Global consumer banking was down 6% at $7.73 billion, and the institutional clients group was down 1% at $8.85 billion.

Wells Fargo

Wells Fargo was also on target for second-quarter earnings. The company reported revenue of $22.16 billion which was in line with analysts’ average estimate and up 3.9% from the comparable quarter. Earnings per share for Wells Fargo in the second quarter were $1.01, also in line with expectations. For the quarter, earnings per share were down 1.94% from the comparable quarter. However, net interest income across all segments helped net income in the second quarter.

For the day both stocks traded lower; however the financial sector overall is trading flat as banks continue to meet expectations. Citigroup was down 0.36% on Friday and Wells Fargo was down 2.50%. Financials overall were down 0.25%. In a CNBC report Friday, market specialists discussed the day’s earnings reports and market valuations in the financial sector for the near term.

Disclosure: I do not own any shares of any stocks included in this article.

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About the author:

Julie Young
Julie Young is a financial writer with comprehensive experience in the financial services industry. She writes about investments, investment products, financial market news and economic trends. Julie has a Master of Science in finance from Boston College and a Bachelor of Science in finance from the University of Arkansas.

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