This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Another Weak Quarter Seen for Citigroup

NEW YORK ( TheStreet) -  Citigroup (C) releases second-quarter earnings Monday. The stock has had an awful year. Let's look at what to expect in the latest quarterly results.

Background:

Citigroup, the leading global financial services company, has some two hundred million customer accounts. It was founded in 1812 and is based in New York. Citi trades an average of 36.2 million shares per day with a market cap of $76.6 billion.

52-week range: $23.11- $42.03, book value: $62.01, float short: 1.89%

Citi is anticipated to report weak second-quarter earnings before Monday's market open. The consensus estimate is currently 89 cents a share, a decline of 20 cents (18.3 percent) from $1.09 during the same period last year.

Analysts as a whole like this company. Currently, Citi has 13 "buy" recommendations out of 20 analysts covering the company, four "holds" and three recommend selling.

Eleven out of 20 analysts now rate Citi a "strong buy," down from 12 analysts a month ago. Compared to three months ago, fewer analysts are rating this company as a "strong buy".

Shareholders have not been rewarded for their patience, shares have fallen 34.4 percent in the last year, and the average analyst target price for Citi is $40.69.

I don't get too excited about analysts tripping over themselves to tell the world they recommend buying one of the largest investment banks in the world. Still, Citi is now trading at such a discount to earnings and relative value of the balance sheet it's hard to make a case to sell if your time horizon is measured in quarters or years and not in months or less.

Weinstein estimate: Citi reports a slight beat with modest guidance, but shares move higher with anything other than downright negative guidance.

The trailing 12-month price-to-earnings ratio is 6.9, the mean fiscal-year estimate price-to-earnings ratio is 6.78, based on earnings of $3.85 a share this year. Investors are receiving 4 cents in dividends for a yield of .15 percent.

In the last month the stock has fallen -1.4%, but like many banks Citi has fallen over 30% in the last year.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,071.22 -41.93 -0.24%
S&P 500 1,977.80 -5.05 -0.25%
NASDAQ 4,505.8520 -6.3420 -0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs