Citizens Financial Group Set to Announce Earnings This January: What Analysts Expect
Profit Predictions Soar Ahead of Fourth-Quarter Results
Citizens Financial Group, Inc. (CFG), based in Providence, Rhode Island, is a prominent provider of retail and commercial banking services. With a market cap of $19.3 billion, the company offers a variety of financial products, including consumer and commercial loans, mortgage financing, deposit products, and investment services. Investors are gearing up for CFG’s fourth-quarter earnings announcement for fiscal 2024, scheduled for Friday, January 17.
Expectations for Earnings Growth
Analysts anticipate that CFG will report earnings of $0.82 per share on a diluted basis, marking a remarkable increase of 141.2% from last year’s $0.34 per share. However, CFG has struggled to consistently meet earnings expectations over the past year, missing analyst forecasts in three of the last four quarters while only matching or beating projections once.
Annual Earnings Forecasts Indicate Steady Growth
Looking at the full fiscal year, projections indicate CFG will achieve an EPS of $3.22, a 2.9% increase from $3.13 in fiscal 2023. The outlook for fiscal 2025 is even more promising, with EPS expected to rise by 20.2% to $3.87.
Strong Stock Performance Compared to Key Indices
Over the past 52 weeks, CFG shares have outperformed the S&P 500’s 23.3% gains, rising by 32.1%. The stock has also surpassed the Financial Select Sector SPDR Fund’s (XLF) increase of 28.5% during the same period.
Factors Behind CFG’s Stock Surge
Several factors are contributing to CFG’s strong stock performance. The Federal Reserve’s decision to lower interest rates, with expectations of further reductions in 2025, has reduced funding costs, helping to enhance net interest income and margins. Additionally, a positive lending environment, increased loan demand, and hints of potential deregulation are all fueling investor optimism. CFG’s Wealth and Private Bank divisions are positioned for significant growth this year.
Market Reaction to Q3 Results
On October 16, CFG shares fell more than 2% after the company reported its third-quarter results. The adjusted EPS of $0.79 met market expectations, but revenue of $1.9 billion fell short of the forecasted $1.94 billion.
Analyst Ratings Reflect Cautious Optimism
The consensus among analysts is moderately bullish regarding CFG stock, with a rating of “Moderate Buy.” Of the 20 analysts assessing the stock, 11 recommend a “Strong Buy,” two endorse a “Moderate Buy,” and eight suggest a “Hold.” CFG’s average analyst price target is set at $51.18, indicating a potential upside of 17% based on current trading levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
