Earnings Preview: What to Expect From Citizens Financial's Report
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Providence, Rhode Island-based Citizens Financial Group, Inc. (CFG) is a bank holding company that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions. Valued at a market cap of $19.3 billion, the company is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Wednesday, Jul. 16.
Ahead of this event, analysts expect this bank holding company to report a profit of $0.88 per share, up 12.8% from $0.78 per share in the year-ago quarter. The company has met or exceeded Wall Street’s earnings estimates in three of the last four quarters, while missing on another occasion. In Q1, CFG’s EPS of $0.77 topped the forecasted figure by 2.7%.
For fiscal 2025, analysts expect CFG to report a profit of $3.76 per share, up 16.1% from $3.24 in fiscal 2024. Its EPS is expected to further grow 29.8% year-over-year to $4.88 in fiscal 2026.
CFG has rallied 26.9% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 12.1% rise and the Financial Select Sector SPDR Fund’s (XLF) 26.3% return over the same time frame.
On Apr. 16, shares of CFG plunged 1.8% after its Q1 earnings release. The company’s revenue fell 1.2% year-over-year to $1.9 billion, primarily due to a 3.5% decline in its net interest income. Yet, its top line figure met the consensus estimates. Moreover, its adjusted EPS of $0.77 dropped 2.5% from the prior-year quarter but came in 2.7% above Wall Street estimates. However, a year-over-year decrease in its average loans and deposits, along with an increase in its underlying efficiency ratio, might have raised investor concerns about the bank’s growth momentum and profitability, leading to its negative share price movement.
Wall Street analysts are moderately optimistic about CFG’s stock, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, 13 recommend "Strong Buy," one suggests a “Moderate Buy,” and eight indicate “Hold.” The mean price target for CFG is $47.43, which indicates a 7.5% potential upside from the current levels.
On the date of publication, Neharika Jain 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.