Citizens Financial Group’s Q4 results show mixed performance against Wall Street expectations, with revenue slightly down and EPS up.
Providence: Citizens Financial Group (CFG) just released its Q4 earnings, and the numbers are a bit of a mixed bag. They reported revenue of $1.99 billion, which is a slight dip of 0.1% from last year. But here’s the kicker: their earnings per share (EPS) jumped to $0.85, up from $0.34 a year ago.
Now, the revenue was actually a bit better than what analysts expected, beating the Zacks Consensus Estimate of $1.96 billion by 1.29%. And the EPS also surprised, coming in 2.41% higher than the consensus estimate of $0.83.
Investors are always on the lookout for how these numbers stack up against Wall Street’s predictions. It helps them gauge the company’s financial health and decide their next moves. So, let’s break down some key metrics that analysts keep an eye on.
For instance, total interest-earning assets averaged $196.61 billion, just shy of the $197.05 billion analysts were expecting. Net charge-offs came in at $189 million, slightly below the $190.95 million estimate. On the bright side, their net interest margin was 2.9%, beating the 2.8% forecast.
Other metrics showed a mixed performance too. The return on average common equity was 6.6%, which is better than the 6.4% analysts predicted. However, the book value per common share was $50.26, falling short of the $50.76 estimate.
Looking at the efficiency ratio, it was 66.3%, which is higher than the expected 65.4%. But net charge-offs as a percentage of average loans and leases matched the estimate at 0.5%. The tangible book value per common share was $32.34, below the $32.75 estimate.
On the capital side, the Common Equity Tier 1 Capital Ratio was 10.8%, slightly better than the 10.6% estimate. The Tier 1 Leverage Ratio came in at 9.4%, beating the 8.3% forecast, and the Tier 1 Capital Ratio was 12.1%, above the 11.9% estimate.
In the past month, CFG shares have done well, returning 10.3%, while the S&P 500 composite dropped by 2.1%. Currently, CFG holds a Zacks Rank #3 (Hold), suggesting it might perform in line with the market soon.
