Citigroup Inc. (NYSE:C) announced its earnings for the first quarter of 2012 this week. The company revealed an earnings per share of $0.95. Analysts had predicted that the company would earn around $1.01 per share. The companies revenues for the quarter ending in March were set at $19.41 billion. It had been forecast by analysts that the company collected around $19.8 billion in revenue for the quarter. In comparison to the last quarter of 2011 this is certainly an improvement. In that quarter the company managed to take in revenues of $17 billion and turned that into an earning of $0.38 per share. The company will be hoping that its release does not have the same effect as last week’s financial results which had both the major institutions that reported last week in the top losers last week.
Both JPMorgan Chase & Co. and Wells Fargo released their earnings for the first quarter of 2012 last week. Both companies earnings beat the estimated figures put up by analysts and the market. However both stocks lost heavily last week after announcing. The company’s results were down on last years similar figures and so the market cannot yet be confident of a recovery in the financial sector with it failing to outperform last year. Citigroup has fallen by around 3.51% last Friday, presumably in response to the fall by other financials in expectation of the bank’s earnings. The bank was up over 1% in pre market trading today before the announcement of their earnings, a full two hours before the market opened today.
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Citigroup failed to out perform its first quarter of 2011 today and that will bring some disappointment to be priced into the stock today. In the first quarter of 2011 the company managed to take $19.7 billion in revenue and posted earnings of $1 a share. The results from the financials last week identified the market as resurgent and showed great room for growth in the months to come assuming the economy continues on its path to growth. Recovery in the US economy is key for Citigroup’s continued revival as an increase in loans and a decrease in loan delinquency would both be brought about by moves toward a healthier economy. Today’s release will likely not have a hugely surprising impact on investors who appear to be adopting a more cautious attitude toward US recovery than earlier in the year.