[wikichart align=”right” ticker=”NYSE:JPM” showannotations=”true” livequote=”true” startdate=”16-10-2011″ enddate=”16-04-2012″ width=”300″ height=”245″]
Overall the street has cut their estimates for Citigroups Q1 2012 earnings from 76 cents to 67 cents. JP Morgan beat due to more housing fees, I am not as bullish on Citigroup [wikichart align=”right” ticker=”NYSE:C” showannotations=”true” livequote=”true” startdate=”16-10-2011″ enddate=”16-04-2012″ width=”300″ height=”245″]’s model and their ability to outperform and get investors interested in buying the stock here.
Revenue one year ago was $24.67 billion a year ago. The analysts expect $18.57 billion (down 24.7% YoY) For the entire 2012, revenue is expected at $79.75 billion.
UBS is modelling $2.5-3.0 billion savings in expenses over the year which they view as possibly too conservative. Only a 5-6% reduction YoY
They are modelling $3 Billion in buybacks this year
After a big miss last quarter Q4 2011, they lowered their estimates for the year from 3.90 to 3.80 EPS 2012.
The stock has already rallied along with ome of the better positioned banks such as JP MOrgan (JPM). Then sold off the past couple weeks in anticipation of decent earnings with little chance of serious upside.
As always, look for commentray on the global economic situation and especially the hotter emerging markets Citi services, more information on their buy back plans, and data on how much they have cut expenses and plan to cut in the future.
I think the banks are going to sell off slightly after the move they have made in Q1 2012. If you have a position consider selling puts as a strategy. Use a strike where you are comfortable owning the stock.
UPDATE: Here are the #’s–>Citigroup, Inc. $C Reports Mixed Q1 Results: 95c, vs. cons. $1, sales $19.41B, vs. cons. $19.4B
Not good missed on nearly everything, stay tuned to hear more from the conference call. Attached you will find the investors initial reaction..If you were fast you could hedge or add on lows or sell on highs..If your not quick well better luck next time and hopefully you have a good position. ;]
Total Revenue in line, Consumer strong and Capital Markets , especially fixed income trading very strong just like JPM Q1 2012 results were.