Providence, Rhode Island-based Citizens Financial Group, Inc. (CFG) provides retail and commercial banking products and services. Valued at $19.3 billion by market cap, CFG offers consumer and commercial loans, mortgage finance, deposit products, retail and commercial banking, asset management, and trust services. The bank holding company is expected to announce its fiscal fourth-quarter earnings for 2024 on Friday, Jan. 17.
Ahead of the event, analysts expect CFG to report a profit of $0.82 per share on a diluted basis, up 141.2% from $0.34 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating or matching the forecast on another occasion.
For the full year, analysts expect CFG to report EPS of $3.22, up 2.9% from $3.13 in fiscal 2023. Its EPS is expected to rise 20.2% year over year to $3.87 in fiscal 2025.
CFG stock has outperformed the S&P 500’s ($SPX) 23.3% gains over the past 52 weeks, with shares up 32.1% during this period. Similarly, it outperformed the Financial Select Sector SPDR Fund’s (XLF) 28.5% gains over the same time frame.
The Federal Reserve’s lowering interest rates and expected continued decreases in 2025 are supporting CFG's outperformance. This is stabilizing deposit or funding costs and boosting net interest income and margin. Anticipated improvements in the lending landscape and increased demand for loans, along with potential deregulation, are also driving investor optimism. Additionally, CFG's premier Wealth and Private Bank franchise is set to drive growth this year.
On Oct. 16, CFG shares closed down more than 2% after reporting its Q3 results. Its adjusted EPS of $0.79 met Wall Street expectations. The company’s adjusted revenue was $1.9 billion, falling short of Wall Street forecasts of $1.94 billion.
Analysts’ consensus opinion on CFG stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, 11 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and eight give a “Hold.” CFG’s average analyst price target is $51.18, indicating a potential upside of 17% from the current levels.
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