Citigroup Q2 Earnings Preview: Revenue Expected to Grow 4.4% YoY

Citigroup (C) will report Q2 earnings on Tuesday, with analysts expecting a 4.4% YoY revenue increase to $20.93 billion and adjusted earnings of $1.60 per share. The company beat revenue expectations by 2.1% last quarter and has only missed Wall Street's revenue estimates once over the last two years. Citigroup's share price is up 11.1% in the last month, with an average analyst price target of $94.40.

Citigroup Inc. (C) is set to release its second-quarter 2025 earnings results on Tuesday, July 15. Analysts expect the company to report a year-over-year (YoY) increase in revenue and adjusted earnings. The consensus estimates suggest that Citigroup will post quarterly revenue of $20.93 billion, marking a 4.4% YoY increase, and adjusted earnings of $1.60 per share [1]. This anticipated growth follows a strong performance in the first quarter, where Citigroup beat revenue expectations by 2.1% [2].

Citigroup's revenue growth is driven by increases in net interest income (NII) and non-interest revenues, as well as a solid performance in Investment Banking (IB) revenues [3]. The company's diversified financial services portfolio has positioned it well to navigate the current economic landscape. Over the past two years, Citigroup has only missed Wall Street's revenue estimates once, demonstrating its consistency in meeting expectations [2].

Analysts have revised their price targets upward, reflecting their positive outlook on Citigroup's financial performance. The average analyst price target is currently $94.40, with some analysts raising their targets significantly. 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].

Valuation metrics also suggest that Citigroup is currently trading at an attractive price. The company's Forward P/E ratio of 11.62 is below the industry average of 16.5, indicating that it may be undervalued relative to its expected earnings growth rate [2]. Additionally, the PEG ratio of 0.66 further supports this notion, suggesting that Citigroup is undervalued compared 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]. However, recent price action suggests that investors are optimistic about Citigroup's prospects, with shares gaining 11.1% in the last month [3].

In summary, Citigroup is expected to report strong Q2 2025 earnings, with analysts anticipating a 4.4% YoY revenue increase and adjusted earnings of $1.60 per share. The company's consistent performance and attractive valuation make it an interesting option for investors to consider.

References:
[1] https://www.ainvest.com/news/citigroup-earnings-set-rise-investors-buy-2507/
[2] https://finance.yahoo.com/news/analyst-projections-key-metrics-reveal-131502629.html
[3] https://www.inkl.com/news/how-to-earn-500-a-month-from-citigroup-stock-ahead-of-q2-earnings