Can Citigroup Break Higher Post-Earnings?
T = Trends for a Stock’s Movement
Citigroup is a global diversified financial services holding company providing consumers, corporations, governments, and institutions with a broad range of financial products and services. It operates in two segments: Citicorp and Citi Holdings. The company’s products and services are: consumer banking and credit, corporate and investment banking, securities brokerage, wealth management, and transaction services to consumers, corporations, governments, and institutions worldwide.
Citigroup’s fourth-quarter profit more than doubled from a year earlier, but results missed analyst estimates as the firm’s cost-cutting efforts fell short and mortgages and fixed-income trading suffered continuing weakness. “They missed my estimates by about 9 percent,” noted Richard Staite, an analyst with Atlantic Equities. He said the bank’s trading desks performed worse than rivals and that the bank’s cost-cutting initiatives didn’t make as much progress as expected. Indeed, after rival banks Wells Fargo & Co., J.P. Morgan Chase & Co., and Bank of America Corp. released earnings that were better than expected earlier in the week, Citigroup executives now face tough questions from analysts who had been hoping Chief Executive Michael Corbat would be able to ramp up cost cuts while maintaining market share in the firm’s diverse group of banking businesses.