Citizens Financial Group (NYSE:CFG) releases its next round of earnings this Tuesday, July 20. Get the latest predictions in Benzinga’s essential guide to the company’s Q2 earnings report.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Analysts expect Citizens Financial Group earnings of $1.09 per share. Revenue will likely be around $1.63 billion, according to the consensus estimate. In the same quarter last year, Citizens Financial Group reported earnings per share of $0.53 on sales of $1.75 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the “consensus estimates.” A company posting earnings or revenue above or below the consensus estimate is known as an “earnings surprise” and may move the stock by a considerable margin.
The Wall Street consensus estimate for earnings would represent a 105.66% increase for the company. Revenue would be down 6.86% from the year-ago period. Citizens Financial Group’s reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.97 | 0.91 | 0.74 | 0.07 |
| EPS Actual | 1.41 | 1.04 | 0.68 | 0.53 |
| Revenue Estimate | 1.65 B | 1.70 B | 1.73 B | 1.68 B |
| Revenue Actual | 1.66 B | 1.71 B | 1.79 B | 1.75 B |
Stock Performance
Over the last 52-week period, shares of Citizens Financial Group are up 61.25%.
Do not be surprised to see the stock move on comments made during its conference call. Citizens Financial Group is scheduled to hold the call at 09:00:00 ET and can be accessed here.
