Citigroup Inc. (C, Financial), the investment bank and financial services company, will release its third-quarter 2017 financial results before the market opens on Oct 12.
For the quarter, Citigroup is forecasted to report earnings per share of $1.3 on average, which is 4.8% higher from the year-ago quarter. The estimates, which were gathered from 23 analysts, range between a low of $1.22 and a high of $1.38 per share.
Analysts expect revenue to come in at $17.78 billion. This represents a 0.11% increase from the comparable quarter of fiscal 2016 and is a mean of 20 estimates. The estimates range between a low of $17.25 billion and a high of $18.16 billion.
As of the second quarter of fiscal 2017, Citigroup had $420.147 billion in cash on hand and securities and $1,243.986 billion in long-term investments. The bank’s total assets were valued at $1,864.063 billion while total liabilities were valued at $1,634.044 billion.
Citigroup has a net profit margin - which measures the bank's overall profitability – of 24.41% versus the industry’s average of 18.47%. Both ratios have been calculated on figures for the past 12 months. This means the bank is outperforming its peers in regard to profitability.
Citigroup currently has a loan-to-assets ratio of nearly 34%. Compared to Wells Fargo & Co. (WFC, Financial) (49.59%) and Bank of America Corp. (BAC, Financial) (40.18%), the bank's asset management and trading activities have a greater weight on the generation of its income.
In addition, Citigroup has a return on assets (ROA), which measures the profitability of the company’s loan activity, of 0.82% versus an industry average ratio of 4.44% and a sector average of 8.05%.
GuruFocus gives Citigroup a financial strength rating of 4 out of 10 and a profitability and growth rating of 4 out of 10.
Citigroup is currently trading around $75.64 per share with a market capitalization of $206.09 billion, a price-book (P/B) ratio of 0.98, a price-earnings (P/E) ratio of 15.10 and a price-sales (P/S) ratio of 2.99.
Analysts have set an average target price per share of $74.27, which ranges between a low of $55 and a high of $90 per share. The recommendation rating is 2.3 out of a total of 5.
The forward P/E ratio is 12.84 and the forecasted EPS for fiscal 2017 is $5.2. The forward P/E ratio multiplied by the forecasted EPS yields a value of $66.77 per share.
Citigroup distributes an annual dividend of $1.28 per share through quarterly payments of 32 cents - which is a 100% increase from the previous quarterly dividend of 16 cents - for a dividend yield of 1.69%.
Disclosure: I have no positions in any stocks mentioned in this article.
