This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Citi Results No Reason to Rally: StockTwits

Stocks in this article: C DIA QQQ SPY

NEW YORK (TheStreet) -- Citigroup  (C) finally gave bullish investors something to cheer at the start of trading Monday. But investors on cautioned that the celebration should be muted given how Citigroup delivered positive results.

The too-big-to-fail bank reported first quarter 2014 sales and earnings before the open. Citi beat consensus estimates, making it the most discussed stock on Monday morning. Shares climbed 4% shortly after the open.

But most investors on remained bearish on Citi. Cashtaggers argued Citi inflated earnings by releasing hundreds of millions from loan loss reserves meant to guard against defaults. As a result, it didn't really show that it had outperformed Wall Street's expectations, they said. Sentiment on the stock was 55% bearish right after the open.

Citi's core business was terrible this quarter (net income down 8%), but it 'beat' by pulling from the loss reserves cookie jar. Again. $C -- Joshua Brown (@reformedbroker) Apr. 14 at 08:42 AM

@howardlindzon @reformedbroker so market ramps up on perceived earnings beat that wasn't. atleast rev beat. -- 6killer (@6killer) Apr. 14 at 08:55 AM

Citigroup reported $1.30 in earnings per share, excluding adjustments for the risk of default on credits and debts, on $20.1 billion in revenue. That beat consensus estimates of $1.16 in earnings per share on $19.38 billion in sales, according to estimates compiled by the Analyst Ratings Network.

It released $673 million from its loan loss reserves after net credit losses declined 15% from the prior quarter to $2.4 billion. The company said asset quality continued to improve. Non-accrual assets fell 19% year-over-year to $9 billion. Corporate non-accrual loans -- business loans that are not generating the stated interest due to nonpayment -- dropped 35% to $1.6 billion. Consumer non-accrual loans declined 14% to $7 billion.

Overall, revenue declined from the same period a year ago. The $20.1 billion figure was 1% lower than in the first quarter of 2013. Citigroup attributed the decline to the fixed-income markets segment of its business and lower U.S. mortgage refinancing activity.

Despite majority negative sentiment, many investors did see encouraging news in the release. They pointed out that, aside from the headline numbers, facets of the business outperformed analyst expectations.

$C Costs & provisions also beat estm, very encouraging. FICC rev were higher than ML forecast & seque better vs $JPM 's number on Friday -- Kinji Watanabe (@Kinji) Apr. 14 at 08:52 AM

However, most cashtaggers said the market was foolish to rally on Citigroup's report. The ETFs that track the S&P 500 (SPY), Dow (DIA) and Nasdaq (QQQ), all rose in early trading.

somehow $C will save the world from an Eco-slowdown and Russian incursion...not! Stay true my thirsty friends $UVXY $TVIX $TZA -- DannyB (@AnalystOnTheEdge) Apr. 14 at 08:39 AM

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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