Citigroup Inc. (C) shares are up $0.89 to $54.10 in pre-market trading Thursday after the company reported its first quarter 2015 earnings results.
The banking giant reported earnings of $1.52 per share on revenues of $19.74 billion, down 2.3% from a year ago. Analysts were expecting EPS of $1.40 on revenues of $19.82 billion.
“While some businesses faced revenue headwinds, we grew loans and deposits in our core businesses and gained wallet share among our target clients,” said Citi CEO Michael Corbat in a statement. “We were pleased that the Federal Reserve did not object to our capital plan so we can now begin meaningful capital return to our shareholders.”
Citi said it cut expenses 10% year over year, and reduced its loan loss reserves to $14.6 billion at quarter end, or 2.38% of total loans, compared to $18.9 billion, or 2.87% of total loans, at the end of the prior year period. Citi’s loans were $621 billion as of quarter end, down 7% from the prior year period.
On valuation measures, Citigroup Inc. shares, which currently have an average 3-month trading volume of 18.89 million shares, trade at a trailing-12 P/E of 24.20, a forward P/E of 9.10 and a P/E to growth ratio of 0.42. The median Wall Street price target on the name is $60.50 with a high target of $73.00. Currently ticker boasts 19 ‘Buy’ endorsements, compared to 7 ’Holds’ and 1 ‘Sell’.
Profitability-wise, Citi has a t-12 profit and operating margin of 10.44% and 20.50%, respectively. The $161.43 billion market cap bank currently prints a one year return of 11.72% and a year-to-date loss of around 1.65%.
The chart below shows where the equity has traded over the last 52 weeks.