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Citizens Financial Group, Inc. (CFG) is a leading retail and commercial bank offering comprehensive financial services in the U.S. with a market cap of $16.3 billion. The Providence, Rhode Island-based company is expected to release its fiscal Q2 earnings results before the market opens on Wednesday, July 17.
Ahead of this event, analysts expect Citizens Financial to report a profit of $0.79 per share, down 14.1% from $0.92 per share in the year-ago quarter. The company has fallen short of Wall Street's bottom-line estimates in the past four quarters. It delivered a negative EPS surprise of 13.3% in the previous quarter as it earned less from customer interest payments.
For fiscal 2024, analysts expect CFG to report EPS of $3.16, up marginally from $3.13 in fiscal 2023.
Citizens Financial has outperformed the broader markets over the past 52 weeks, with shares up 39.5% versus the S&P 500 Index's ($SPX) 23.8% gain and the S&P 500 Financials Sector SPDR's (XLF) 23.6% returns over the same period.
Earlier this year, CFG saw declines in its shares following its Q4 results on Jan. 17 due to a significant drop in profit, impacted by charges related to deposit insurance and a projected decline in net interest income (NII) amid higher funding costs and reduced income from terminated swap contracts. Moreover, after its Q1 earnings report on Apr. 17, the stock fell marginally due to a significant decline in NII, reflecting lower earnings from customer interest payments. Concerns over subdued loan growth projections contributed to investor disappointment and further pressured the stock.
Analysts' consensus view on Citizens Financial stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 20 analysts covering the stock, 10 recommend a "Strong Buy," one has a "Moderate Buy" rating, and nine give a "Hold" rating. This configuration is more bullish than three months before, with eight analysts suggesting a "Strong Buy."
The average analyst price target for CFG is $39.28, suggesting a potential upside of nearly 8% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
