Citigroup expected to lose 97 cents

Posted Jan 13th 2008 5:19PM by Peter Cohan
Filed under: Forecasts, Deals, Citigroup Inc. (C)

For more earnings forecasts, see Peter Cohan's Earnings expectations for 10 banks tell a mixed story.

Thomson Financial expects Citigroup (NYSE: C) to lose $0.97 when it announces its fourth-quarter results on January 15th. That's bad compared to the same period in 2006, when it earned $0.70.

Citigroup is a New York-based bank whose segments include Global Consumer Group, Corporate and Investment Banking (CIB), Global Wealth Management and Alternative Investments (AI). In the last year, its revenues were $117.9 billion and its net income totaled $18.5 billion. Its stock has fallen 48% in the last year, and it now trades at a P/E of 7.5.

Citigroup has a record of beating estimates. In the second quarter of 2007, it beat the estimate by 8.8% and in the third quarter it beat by 6.8%. My hunch is that Citigroup will lose more than expected.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He owns Citigroup shares.

Tags: bank stocks, banks, BankStocks, C, Citigroup, earnings, financials, forecasts, inthenews

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Reader Comments (Page 1 of 1)

1-11-2008 @ 8:25PM

alan said...

Your estimates are right on. The blood will be flowing on the streets of Park Ave. next week.
The lack of any comments from management verges on criminal.
C is quietly selling percentages of itself to raise needed capital. I see the real Prince and now even the government of China will buy stakes in C. This is mindblowing mismanagement at its finest

1-13-2008 @ 11:51PM

VIC said...

THINGS HAVE CHANGED SINCE SANDY LEFT THE COMPANY. PRINCE HAS TAKEN THE COMPANY OVER A CLIFF, AND WHEN THEY THROW HIM OUT, THEY GIVE HIM MULTI MILLIONS AS A SEPARATION. THE STOCK HOLDERS SHOULD THROW ALL OF THE MANAGEMENT TEAM OUT BECAUSE THEY HAVE ALL UNDERPERFORMED.