Should investors worry about CIA's recent EPS?

**Citizens Financial Group, Inc.'s (CIA) recent EPS raises concerns for investors**, and here's why:

1. **Missed Earnings Expectations**: The latest reported EPS of $0.07 for Q4 2024 missed the consensus estimate of $0.10. This marks a significant deviation from expectations, raising questions about the company's performance and profitability.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|CIA|CIA.N|Citizens|2024 Q1|-10.000000000000009|0.09|169|
|CIA|CIA.N|Citizens|2024 Q2|-33.33333333333333|0.08|169|
|CIA|CIA.N|Citizens|2024 Q3|0|0.05|169|
|CIA|CIA.N|Citizens|2024 Q4||0.07|169|

2. **Analyst Opinions and Estimates**: Analysts have cut their Q1 2025 EPS estimates to $0.05, reflecting a more cautious outlook on the company's short-term performance. The full-year FY2025 EPS estimate is $0.31, suggesting that the company's earnings may not recover quickly to previous levels.
3. **Underlying Financial Health**: Despite the EPS miss, Citizens Financial Group, Inc. reported underlying net income of $412 million and an EPS of $0.85 for Q4 2024. The CET1 ratio stood at 10.8%, and the LDR was at 79.6%, indicating a relatively strong balance sheet. However, these underlying metrics still fall short of the previous quarter's underlying EPS of $3.24, which suggests a decline in profitability.
4. **Dividend and Stock Performance**: The company declared a quarterly dividend of $0.42 per share, payable on February 14, 2025. This dividend payout reflects the company's commitment to returning value to shareholders, but it may also indicate a need to manage capital conservatively in light of the recent earnings struggles.
5. **Market Reaction and Future Prospects**: Citizens' stock has outperformed the market so far in 2025, but the sustainability of this performance is uncertain given the recent earnings miss and the forecasted low EPS in the near term. The company's ability to improve its net interest margin and maintain positive operating leverage will be crucial for future earnings recovery.

In conclusion, while there are some positive aspects to the company's financial position and dividend policy, the recent EPS miss and analyst downgrades suggest that investors should exercise caution and monitor the company's performance closely in the coming quarters. The decision to worry or not will depend on individual investment goals, risk tolerance, and the weightage given to CIA in a diversified portfolio.