Citi Earnings Top Estimates
FBN’s Adam Shapiro breaks down the earnings report from Citi.
- Duration 6:11
- Date Apr 16, 2012
FBN’s Adam Shapiro breaks down the earnings report from Citi.
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There's breaking his right now this is Citigroup earnings report that has just been released Adam Shapiro -- in the newsroom looking over the details what do we have.
That's right it seems to be a -- on both fronts first quarter revenue coming in at twenty point two billion that's excluding credit valuation adjustments and that valuation adjustments.
First quarter revenue expectation was for nineteen point eight billion also up earnings per share coming in.
At one dollar and eleven cents the street was expecting one dollar -- All right so the Citigroup earnings report is just did to Citigroup's stock price there at 32 dollars and 75 cents a share in the pre market it's pretty much right where it was.
Before that release came out but -- out of seven a dollar eleven per share.
You better than expected there and excluding certain items and we'll see throughout -- -- how Citigroup's stock reacts that also go back to Adam.
To dig a little bit deeper into this report as he has a chance to get some more details.
But Citigroup appears now to be trading off a little bit after the report came out people have a little bit of a chance to react to it which is often the case because.
Of some community pared down a little bit deeper inside anyway more on Citigroup as we continue here but right now let's take a look at the rest of the -- -- That's right Asia closing there and we -- losses across the board with the biggest loser.
Being -- Nikkei down nearly one and three quarter percent let's take a look at Europe now Alter your major market gauges were up.
That are up there the trading day still under way.
But again at what was weighing on the markets earlier in the session would be a -- -- and the yields on Spanish debt it appears that a large buyer.
Did -- man wants those bond markets -- sovereign debt markets start writing themselves Italy went down along with Spain.
Then you saw the reaction in the stock markets their futures.
You see them seeing what's happening there we see a little bit of weakness or pull back if -- well.
Dow futures were up more earlier in this morning's trading up 25 points right now and commodities oil and gold.
-- -- Not so over why the markets now let's go to London and nick Hastings joins us nick GAAP correspondent of Dow Jones suppliers and it's good to see you once again nick what about this idea of the Spanish debt that everybody's been so concerned about.
Are they not anymore -- we see this situation playing itself out.
All it showed slow slow slow is dislike watching -- chocolate melt basically -- all you have to do is look at the peripherals and Spain.
Where they continue to -- the cost of that funding continues to rise.
That means that they -- be much more risk of default -- what is -- -- you compare that with what's happening in the Germany.
Where actually there are yields are record lows in other words.
People are even cod a -- talk certainly less for holding their debt than they did previously so they going from Spain.
And going into Germany on you know the point to which the UN wants this thing here is -- -- that the Euro hanging.
The eurozone really falling very much as a result of this because it's really deceive the shift from one part of the Euro -- Into the next is opposed to a pullout from the eurozone as a whole and -- -- see what happens when and if that happens.
So it is interest -- got a lot more by the way on this breaking Citi -- earnings report here in.
It just a second this interest in to look at it from the perspective of hate.
It looked like for a moment here maybe the worst was over in Europe -- we're starting to slowly but surely move boggling these headlines cannot make you start to think back that.
A lot of lot of work still to be done.
Absolutely I mean I think this is that the problem is that on we're only on.
You know getting up to chapter to chapter three may be in this story -- means I don't think it's a case of closer -- -- go away because this will continue.
Believe you me and things could get a lot -- the next few weeks.
You're French elections whether we like it to the with a government that's -- -- all you'll get the fiscal argue against the fiscal we have Greek elections are likely to have a X shaky coalition that it's not gonna wanna put in place.
The austerity measures and then you've got Spain basically.
Being -- slowly and closer and closer towards appalled by this rise in that funding costs and the fact is that basically will not have the money to put it together.
It's a slow process but -- as I said so close the book.
Sarkozy could be in trouble there in France -- -- might be one of the big headlines in the coming weeks nick Hastings Dow Jones Newswires today live from London thanks -- Let's step back to Adam Shapiro who has more -- -- out of Citigroup.
Earnings and did some things that investors may want to pay attention to their quarterly securities and banking revenue declined by 12% from the prior period.
To five point three billion.
Also consumer lending revenue down one point three billion that's down 13% we saw the same kind of thing happening.
It JPMorgan Chase and Wells Fargo last week this is great to -- that Citigroup's tier one capital ratio now at fourteen point 2%.
At the end of the quarter and that may be something very pleasing to the Federal Reserve -- Thank you Adam Adam Shapiro and is there are more on that at breaking story throughout the morning to Citigroup report will be a big one for the markets but that's for some other headlines that investors and others are following -- settled back with the -- Diane.
-- -- thousand investors will get the latest read on the retail sector this morning economists estimate retail sales rose zero point 3% in March.
This is after they posted their largest gain in five months in February jumping one point 1%.
If you take out the auto component sales are expected to have risen zero point 6% last month and we'll have that report for you when it's released at 8:30 eastern time.
Meanwhile the Carlyle group has filed paperwork for its IPO the private equity firm plans to sell thirty point five million shares.
-- 23 to 25 dollars each in that would value the company.
At over seven billion dollars the IPO is expected to come for the end of this month with shares being traded on the NASDAQ.
Carlyle which has about 147.
Billion dollars in assets under management returned a record nineteen billion to its fund investors last year.
And Goldman Sachs has unloaded.
More of its stake in Industrial & Commercial Bank of China the bank sold 2.5 billion dollars worth of shares of the Chinese firm most of them.
Went to a state owned investment group from Singapore.
That leaves Goldman Sachs with less than three billion dollars in IC BC shares or a little more than -- 1% stake in the company.
Goldman originally purchased in nearly 5% stake in 2006.
For nearly two point six billion dollars Connell.
-- Diane that thank you very much offer.