Citigroup Stomps Expectations

Shares of Citigroup (NYSE: C  ) were up nearly 5% today, beating analysts' expectations for both the top and bottom line. Non-adjusted earnings per share came in at $1.30 compared with consensus estimates of $1.14, and revenue for the quarter was $20.1 billion, compared to an estimated $19.7 billion.

While this is definitely good news for the bank, Citigroup hasn't had an easy time of things lately. In this year's round of banking stress tests conducted by the Federal Reserve, Citigroup passed in terms of its capital ratios, but the Fed came down hard on the bank for its approach to managing risk, and denied the bank's requests to return more capital to shareholders in the form of dividends and share buybacks.

So is the boost today a sign that Citigroup is back on the right track? In this video from Monday's Stock of the Day, Motley Fool analyst Jamal Carnette says he's still staying away. Jamal sums up the business of banking, saying that banks quantify and price risk accordingly. Since the Federal Reserve still believes that Citigroup is doing a poor job of that, Jamal sees several other more attractive buys in the sector, which he highlights in the video.

Big banking's little $20.8 trillion secret
There's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banks. That's bad for them, but great for investors. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. To learn about about this company, click here to access our new special free report.


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  • Report this Comment On April 15, 2014, at 5:01 PM, mikewatson021 wrote:

    Citigroup will continue paying its shareholders one cent in dividends and go ahead with a $1.2 billion share buyback plan already authorized. Citigroup shareholders will have to wait until the first quarter of fiscal 2015 for an increase in the bank’s dividend and share buyback program . http://goo.gl/y0hAFu

  • Report this Comment On April 15, 2014, at 8:26 PM, davidscott1 wrote:

    Citigroup has reported consolidated net revenues of $20.12 billion for first quarter FY14, which is a 2.2% fall year over year but 3.7% better than analysts’ estimates of $19.39 billion.

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