Citi Q4 Earnings Preview: Analysts Upbeat On Future Prospects, Retail Remains Neutral

Wall Street expects Citi to post fourth-quarter earnings per share of $1.22 on revenue of $19.51 billion.

Citigroup drew investor attention on Monday ahead of the lender’s fourth-quarter earnings report later this week.

Analysts expect Citi to post fourth-quarter earnings per share of $1.22 on revenue of $19.51 billion. According to Stocktwits data, the bank has beaten estimates for the previous three quarters.

According to TheFly, Wells Fargo analysts had earlier said that they view the stock as the “dominant number one pick” among large-cap banks under almost any scenario.

The analysts also stated that Citi’s book value should grow even in a recession, even though the stock trades 20% below its current tangible book value. 

Meanwhile, Barclays analysts expect Citi’s earnings growth to accelerate even further after it hit its revenue and expense targets in 2024.

The firm expects Citi's valuation to improve in 2025 and 2026 as it builds its return on tangible common equity from 7.2% year-to-date toward its 11-12% medium-term target.

Shares of the lender were up 0.7% on Monday.

Retail chatter on Stocktwits jumped to ‘extremely high’ (82/100) territory from ‘normal’(53/100) a day ago, while retail sentiment remained ‘neutral.’

At the same time, retail chatter on Stocktwits indicated a divided opinion on the stock. 

BofA analyst Ebrahim Poonawala said conversations on Citi suggest a high degree of investor skepticism on whether CEO Jane Fraser could steer a turnaround. But Poonawala said Fraser is on the right track, and the bank has made significant progress. 

Citi is scheduled to post its quarterly results before the bell on Wednesday.

The stock has gained nearly 24% over the past year.

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