Citigroup Inc. (C) is slated to report fourth-quarter 2024 results on Jan. 15, 2025, before market open.Among Citigroup’s close peers, JPMorgan (JPM) and Wells Fargo & Company (WFC) are also scheduled to announce quarterly numbers on Jan. 15.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the third quarter, Citigroup witnessed a rise in total loans and deposits balance. The company registered a solid increase in Investment Banking (IB) revenues. However, rise provisions for credi ...

Core Insights - Brian Gilmartin founded Trinity Asset Management in May 1995 to provide better service to individual investors and institutions overlooked by larger firms [1] - He began his career as a fixed-income/credit analyst and has extensive experience in managing equity and balanced accounts for clients [1] - Gilmartin holds a BSBA in Finance from Xavier University and an MBA in Finance from Loyola University, along with a CFA designation awarded in 1994 [1] Company Background - Trinity Asset Management focuses on catering to individual investors and institutions, emphasizing personalized attention and service [1] - The firm was established to address the needs of clients who were not receiving adequate support from larger financial institutions [1] Professional Experience - Gilmartin has a background in fixed-income analysis, having worked at a Chicago broker-dealer and at Stein Roe & Farnham from 1992 to 1995 before founding his own firm [1] - He has contributed to various financial publications, including TheStreet.com and Wall Street Journal, showcasing his expertise in the investment field [1]

Hedge Fund Insights and Retail Investors - Retail investors can use quarterly filings of hedge funds and asset managers accessible through the SEC to gain new investment ideas and validate their investment thesis [1] - Following billionaire investors can be beneficial as they manage large funds with significant capital and have extensive experience and professional training [14] Citigroup's Recent Developments - Citigroup has struggled since the Great Recession but has started to improve under CEO Jane Fraser's leadership [3][4] - The bank is selling or exiting 14 international consumer franchises that consumed too much capital and lacked competitive scale [7] - Citigroup announced plans to divest its highly profitable Mexico franchise, though the process has taken longer than expected [7][11] Investment Activity in Citigroup - Warren Buffett's Berkshire Hathaway took a $4 billion stake in Citigroup in early 2022, making it the 14th largest position in Berkshire's $297 billion portfolio [10] - Stanley Druckenmiller's Duquesne Family Office purchased over 327,000 shares of Citigroup in the third quarter of 2023 [10] Citigroup's Valuation and Strategic Focus - Citigroup trades at roughly 82% of its tangible book value (TBV), reflecting a discount due to its historical underperformance [6] - The bank is focusing on higher-returning businesses such as credit card lending, investment banking, and international cash management [12] - Citigroup has a 3% dividend yield, providing income for investors while they wait for potential stock price appreciation [13] Market and Regulatory Environment - The banking environment has improved with a steepening yield curve, potential deregulation, and lighter capital requirements under the incoming administration [13] - Investment banking activity is expected to improve, further benefiting Citigroup's earnings potential [13]

Core Insights - JPMorgan shares have decreased by over -3% since late November, while Wells Fargo and Citigroup have shown varied performance since the election [1][2] - The overall operating environment for major banks has improved due to a favorable macroeconomic outlook and a more permissive regulatory regime [4] - Investment banking revenues are expected to rise significantly, with JPMorgan likely seeing gains exceeding +20% [11] Performance Analysis - Since the November elections, JPMorgan shares are up +2%, while the S&P 500 index is slightly negative [1] - Over the past year, JPMorgan, Citigroup, and Wells Fargo have outperformed the broader market [3] - The Zacks Major Banks industry is projected to earn +4.4% higher earnings in Q4 2024 on +3.3% higher revenues [16] Economic Indicators - The bond market's reaction to the December jobs report has led to a reduction in the yield curve's steepness, which is beneficial for net interest income (NII) for banks [6] - Loan demand has shown signs of improvement, with a +1.8% growth in December, marking the best rate in over a year [7] - Current bankruptcy levels are approximately 30% below pre-COVID averages, indicating improved household balance sheets [9] Earnings Expectations - JPMorgan is expected to report earnings of $4.02 per share, up +1.3% year-over-year, with revenues of $40.9 billion, up +6.1% [12] - Wells Fargo is anticipated to report EPS of $1.34, up +3.9% year-over-year, on revenues of $20.5 billion, up +0.1% [14] - Citigroup is expected to report earnings of $1.24 per share, up +47.6% year-over-year, with revenues of $19.6 billion, up +12.1% [15] Valuation Metrics - Despite strong performance, major bank stocks remain undervalued compared to conventional metrics [19] - The Zacks Major Banks industry is currently trading at 66% of the S&P 500 forward 12-month P/E multiple, indicating potential for valuation expansion [21]

Earnings and Revenue Projections - Citigroup is expected to post quarterly earnings of $1 24 per share, indicating a year-over-year increase of 47 6% [1] - Revenues are projected to be $19 55 billion, up 12 1% from the year-ago quarter [1] - The consensus EPS estimate has been revised downward by 0 3% over the past 30 days, reflecting analysts' reappraisal of initial projections [1] Key Metrics Forecast - The Efficiency Ratio is estimated at 68 3%, compared to 91 7% in the year-ago quarter [4] - Average balance of Total interest-earning assets is forecasted at $2,282 52 billion, up from $2,230 30 billion in the same quarter last year [4] - Total non-accrual loans are predicted to reach $3 44 billion, compared to $3 20 billion in the year-ago quarter [4] - Leverage Ratio is expected to be 7 2%, up from 5 8% in the same quarter last year [5] - Consumer non-accrual loans are projected to reach $1 72 billion, compared to $1 32 billion in the year-ago quarter [5] - Tier 1 Capital Ratio is estimated at 15 1%, slightly up from 15% in the same quarter of the previous year [5] - Corporate non-accrual loans are forecasted at $1 59 billion, down from $1 88 billion in the year-ago quarter [6] - Total Non-Interest Income is expected to reach $6 16 billion, up from $3 62 billion in the same quarter last year [6] - Net Interest Income is projected at $13 40 billion, compared to $13 82 billion in the year-ago quarter [7] Stock Performance and Market Comparison - Citigroup shares have increased by 2 6% in the past month, outperforming the Zacks S&P 500 composite, which declined by 2 2% [7] - With a Zacks Rank 3 (Hold), Citigroup is expected to mirror the overall market performance in the near future [7]

Core Viewpoint - JPMorgan is set to report its Q4 2024 earnings on January 15, 2024, and is expected to provide insights into the performance of the banking sector due to its extensive involvement in various financial services [2][3]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for JPMorgan's Q4 revenues is $40.92 billion, indicating a 6.1% year-over-year growth [3]. - The consensus estimate for earnings has been revised upward by 2.3% to $3.95, reflecting a slight decline from the previous year due to increased provisions for credit losses and higher operating expenses [4]. - JPMorgan has a strong earnings surprise history, having outperformed the Zacks Consensus Estimate in the last four quarters with an average beat of 7.73% [4]. Group 2: Key Performance Drivers - Net Interest Income (NII) is expected to be around $22.9 billion, with a Zacks Consensus Estimate of $22.88 billion, suggesting a 4.9% decline year-over-year [5][7]. - Investment Banking (IB) revenues are projected to increase by 43.1% year-over-year, with a consensus estimate of $2.55 billion [10]. - Markets revenues are anticipated to rise by 15% year-over-year, with equity markets revenues estimated at $2.12 billion, reflecting a 24.4% increase [12]. Group 3: Expense and Asset Quality Outlook - Adjusted non-interest expenses are expected to be approximately $23 billion, with management anticipating a rise due to expansion efforts and technology investments [14]. - The provision for credit losses is estimated at $2.66 billion, reflecting concerns over potential loan defaults [15]. - The consensus estimate for non-performing loans (NPLs) is $8.46 billion, indicating a 22.2% year-over-year increase [16]. Group 4: Management Guidance for 2024 - Management expects NII to reach approximately $92.5 billion in 2024, up from $89.3 billion in 2023 [17]. - Adjusted non-interest expenses are projected to be around $91.5 billion, including increased FDIC assessments and technology spending [17]. - Loan growth is expected to be modest, with deposits anticipated to remain relatively flat [18]. Group 5: Stock Performance and Valuation - JPMorgan shares have outperformed the S&P 500 Index and its peers, but the stock is currently trading at a forward P/E of 14.48X, above the industry average of 14.08X, indicating a stretched valuation [22]. - The company is well-positioned to leverage its scale and expand its footprint, particularly following the acquisition of First Republic Bank [23].

Core Viewpoint - Wall Street anticipates a year-over-year increase in Citigroup's earnings driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Citigroup is expected to report quarterly earnings of $1.23 per share, reflecting a year-over-year increase of +46.4% [3]. - Revenue is projected to be $19.49 billion, which is an 11.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.31% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Citigroup is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.32% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Citigroup currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - Citigroup has consistently beaten consensus EPS estimates in the last four quarters, with a notable surprise of +12.69% in the last reported quarter [12][13]. Industry Context - In the broader financial sector, Wells Fargo is also expected to report earnings of $1.34 per share, with a year-over-year change of +3.9% and revenues of $20.52 billion, up 0.2% [17]. - Wells Fargo's consensus EPS estimate has been revised 0.9% higher, resulting in an Earnings ESP of 0.68%, combined with a Zacks Rank of 1, indicating a strong likelihood of beating the consensus [18].

Group 1 - Citigroup Inc. is set to release its fourth-quarter financial results on January 15, with analysts expecting earnings of $1.21 per share, an increase from 84 cents per share in the previous year [1] - The projected quarterly revenue for Citigroup is $19.42 billion, compared to $17.44 billion a year earlier [1] - Citigroup shares experienced a gain of 1.3%, closing at $73.68 [1] Group 2 - B of A Securities analyst Ebrahim Poonawala maintained a Buy rating and raised the price target from $90 to $95 [4] - Keefe, Bruyette & Woods analyst David Konrad maintained an Outperform rating and increased the price target from $82 to $85 [4] - Oppenheimer analyst Chris Kotowski maintained an Outperform rating but reduced the price target from $110 to $102 [4] - Goldman Sachs analyst Richard Ramsden maintained a Buy rating and raised the price target from $72 to $81 [4] - Piper Sandler analyst Scott Siefers maintained an Overweight rating and increased the price target from $73 to $80 [4]

Core Viewpoint - Citigroup Inc. shares have reached a new 52-week high, driven by optimism regarding upcoming earnings and strategic restructuring efforts [1][3][4]. Financial Performance - Citigroup's stock has increased by 37.3%, while the S&P 500 Index and industry growth rates are 26.8% and 39.9%, respectively [1]. - The company anticipates a 20-30% increase in investment banking fees for Q4 2024, with overall revenues expected to be at the higher end of the $80-$81 billion range for 2024 [3]. Business Restructuring - Under CEO Jane Fraser's leadership since 2021, Citigroup has focused on cost-cutting, management restructuring, and streamlining operations to enhance profitability [4][5]. - The restructuring has led to a reduction in management layers from 13 to 8, with leaders of the main businesses reporting directly to the CEO [5]. - The company projects a compounded annual growth rate of 4-5% in revenues and annualized savings of $2-$2.5 billion by the end of 2026 [7]. Interest Rate Impact - The Federal Reserve's recent rate cuts are expected to stabilize and eventually lower funding costs, positively impacting Citigroup's net interest income (NII) and net interest margin (NIM) [8][10]. - NII declined by 2% year-over-year during the first nine months of 2024, with NIM decreasing to 2.33% in Q3 2024 [9]. Capital Distribution - As of September 30, 2024, Citigroup's Common Equity Tier 1 ratio and total capital ratio were 13.71% and 15.21%, respectively, exceeding regulatory requirements [10]. - The company increased its quarterly dividend by 6% to 56 cents per share in July 2024 and has a share repurchase plan, having repurchased $1 billion worth of shares in Q3 2024 [11][12]. Credit Losses - Citigroup has experienced a 52% increase in net credit losses during the first nine months of 2024, with rising delinquency and charge-off rates [14][15]. - For 2024, net credit losses are expected to be between 3.5-4% for branded cards and 5.75-6.25% for retail services [16]. Analyst Sentiment - The Zacks Consensus Estimate for earnings per share has increased to $5.87 for 2024 and $7.20 for 2025, reflecting positive analyst sentiment [17].

Core Points - Cytokinetics granted stock options, restricted stock units (RSUs), and performance stock units (PSUs) to 9 employees as a material inducement to their employment on December 31, 2024 [1][3] - The total granted includes 52,188 stock options, 33,885 RSUs, and 3,189 PSUs [1] Summary of Stock Options and RSUs - The RSUs will vest over 3 years, with 40% vesting on the first anniversary, another 40% on the second anniversary, and the final 20% on the third anniversary, contingent on continued service [2] - The stock options have an exercise price of $47.04 per share, equal to the closing price on the grant date, and will vest over 4 years, with 1/4 vesting on the one-year anniversary and the remainder vesting monthly over the next 36 months [2] - The stock options have a 10-year term [2] Summary of PSUs - The PSUs are subject to two performance goals, with up to 50% of the shares earned upon certification of the first goal and another 50% upon certification of the second goal [2] - Earned shares will vest as to 50% on the certification date and the remaining 50% after one year from the certification date, also contingent on continued service [2] Company Overview - Cytokinetics is a late-stage, specialty cardiovascular biopharmaceutical company focused on developing drug candidates targeting muscle biology for treating diseases with compromised cardiac muscle performance [4] - The company is preparing for the potential commercialization of aficamten, a cardiac myosin inhibitor, following positive results from the SEQUOIA-HCM Phase 3 clinical trial [4] - Other drug candidates in development include omecamtiv mecarbil for heart failure, CK-586 for heart failure with preserved ejection fraction, and CK-089 for muscular dystrophy and impaired skeletal muscle function [4]