Citigroup Earnings Set to Rise: Should Investors Buy?

Citigroup is expected to report a year-over-year increase in earnings on higher revenues when it releases its Q2 2025 earnings on July 15. The stock may move higher if actual results top expectations, but a negative surprise could lead to a decline. Analysts expect $1.67 per share in earnings, a 9.9% increase from the previous year, and $20.93 billion in revenues, a 3.9% increase from the year-ago quarter.

Citigroup Inc. (C) is poised to release its second-quarter 2025 earnings results on Tuesday, July 15, with analysts expecting a notable increase in earnings and revenue. Citigroup is projected to report earnings of $1.67 per share, marking a year-over-year growth of 9.87% compared to $1.57 per share in the same period last year [1]. The company is also expected to post quarterly revenue of $20.93 billion, a 3.92% increase from the $20.14 billion reported in the year-ago quarter [1].

The stock may see upward movement if the actual results exceed expectations, as positive surprises often lead to increased investor confidence. Conversely, a negative surprise could result in a decline in stock price. Analysts have revised their estimates, reflecting the changing business landscape and near-term trends [2].

Citigroup has seen significant analyst interest, with various ratings and price targets. For instance, Morgan Stanley analyst Betsy Graseck maintained an Overweight rating and raised the price target from $94 to $103 [1]. Goldman Sachs analyst Richard Ramsden maintained a Buy rating and boosted the price target from $85 to $96 [1]. These changes highlight the positive outlook on Citigroup's financial performance.

Valuation metrics also indicate a favorable position. Citigroup is currently trading at a Forward P/E ratio of 11.62, which is below the industry average of 16.5 [2]. Additionally, the company's PEG ratio of 0.66 suggests that it is undervalued relative to its expected earnings growth rate.

Investors should closely monitor Citigroup's earnings report and any subsequent analyst revisions. The Zacks Rank system, which considers estimated changes, has assigned Citigroup a Zacks Rank of #3 (Hold), indicating a moderate outlook [2].

References:
[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/07/46271388/top-wall-street-forecasters-revamp-citigroup-expectations-ahead-of-q2-earnings
[2] https://www.nasdaq.com/articles/citigroup-c-rises-market-takes-dip-key-facts