(By David) Citigroup Inc (NYSE:C) is scheduled to report its first quarter 2010 earnings results on Monday April 19, 2010. Citigroup has paid back its TARP preferred stake, but the US government still owns nearly 27% of the common shares which creates an environment where regulators will have a significant influence over the company's management, which retards risk taking. Citigroup has begun yet another restructuring of senior management, the result of a government review of the company.
Citigroup Inc., the leading global financial services company, has some two hundred million customer accounts and does business in more than hundred countries, providing consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citigroup''s trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, and Banamex.
On January 19, 2010, Citigroup reported a fourth-quarter 2009 operating loss of $0.06 per share, its ninth consecutive quarterly loss. The net loss for the quarter was $0.32 per share after including $0.26 per share of costs related to Citi's TARP repayment and the exit of Citi's loss-sharing agreement with the US government. The $0.32 per share loss was in line with expectations of a $0.33 per share loss. Citigroup lost $0.23 per share on an operating basis in the previous quarter and $3.90 per share in the year-ago. For the full year, Citigroup lost $1.02 per share versus $6.21 per share in 2008. ON December 16, 2009 Citigroup priced an issue of common stock at $3.15 per share, well below the then-current market price of about $3.50 per share, in order to pay back its TARP.
For the first quarter of 2010, the average earnings estimate for Citigroup is $0.00 per share, with a high estimate of $0.04 per share and a low estimate of -.08 per share. Full year earnings estimates for C is $0.04 per share with a high estimate of $0.21 and a low estimate of -0.40 per share. Average revenue estimates for the first quarter of 2010 are 20.92 billion dollars, with a high estimate of 24.02 billion dollars and a low estimate of 18.75 billion dollars. Full year revenue estimate is 83.96 billion dollars with a high estimate of 95.67 billion dollars and a low estimate of 75.34 billion dollars. Over the past 90 day and 60 day periods the earnings, estimates for Citigroup have remained stable at $0.00 per share. Growth estimate for Citigroup is 100%, where as the next quarter the estimate is -100%.
Citgroup Inc., is currently is trading at $4.26, which is the upper portion of the 52 week range of 2.25 and 5.43. Citigroup trades at a discount to its book value of about $5.32 per share while some competitors (Bank of America) trade at about a 50% premium to its book value and stronger banks like Wells Fargo trade at even larger premiums to tangible book. Citi has a market cap of 121.31 billion dollars, and debt of 238%. Citigroups revenues and credit quality lag well behind major peers and credit risk has increased further with the termination of the loss-sharing agreement. The termination of the loss-sharing agreement also brought $144 billion in risk-weighted assets back into regulatory capital ratio calculations. The company's sales growth is -26% for the last quarter a 3 year sales growth rate of -15%, and a profit margin of -10%.
