Why Did Citigroup Take a Hit After Reporting Q3 Earnings?
At first glance, you'd be excused for thinking that Citigroup (NYSE: C) had a great quarter, as both its revenue and earnings climbed on a year-over-year basis in the three months ended Sept. 30. Yet its stock promptly proceeded to decline in the wake of the results, spurred by fears of an incipient uptick in credit losses. It ended the day down by 3.4%.
Citigroup earned $4.1 billion in the quarter. That equates to an 8% increase over the year-ago period, in which it earned $3.8 billion. On a per-share basis, the bank's earnings equate to $1.42, which was well above the consensus forecast calling for earnings per share of $1.32.
"We delivered a very strong quarter, showing the balance of our franchise by both product and geography and highlighting our multiple engines of client-led growth," said CEO Michael Corbat in prepared remarks. "We had revenue increases in many of the products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses."
Source: Fool.com
Citigroup Inc. Stock
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