Banking giant Citigroup (C) smashed earnings and sales expectations for the second quarter of fiscal 2025, pushing its shares up over 2% in pre-market trading at the time of writing. Total revenues increased 8% year-over-year to $21.7 billion, easily beating Wall Street’s estimate of $20.96 billion. Similarly, earnings per share (EPS) of $1.96 surged 29% year-over-year and topped the consensus estimate of $1.61.
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Moreover, Citi’s board increased the quarterly dividend to $0.60 per share from $0.56 per share, following the Federal Reserve’s stress tests. The current dividend already reflects an above-industry-average yield of 2.58%. During the quarter, Citi repurchased $2 billion worth of common stock as part of its $20 billion stock buyback program.
Here’s How Citigroup Performed in Q2
Citi’s Banking segment revenues grew 18% year-over-year to $1.9 billion, despite reporting losses on loan hedges. Additionally, Citi’s Markets revenues rose 16% year-over-year to $5.9 billion, driven by strong growth in both Fixed Income and Equity markets. Meanwhile, the bank’s Wealth Management segment saw the largest increase, rising 20% year-over-year to $2.2 billion. U.S. Personal Banking revenues rose 6% year-over-year to $5.1 billion.
Commenting on the results, CEO Jane Fraser noted, “With revenue up 8%, Services continues to show why this high-return business is our crown jewel. Markets had its best second quarter performance since 2020 with a record second quarter for Equities.”
For full-year fiscal 2025, Citigroup now expects revenues of $84 billion, at the higher end of its prior guidance. Investors and analysts will be looking for further clarity on the bank’s outlook, as well as an update on the CEO’s turnaround plan. Year-to-date, C stock has surged 26.2%, outperforming its banking peers.
Is Citigroup a Good Stock to Buy?
Ahead of the Q2 print, analysts remained divided on Citigroup’s long-term stock outlook. On TipRanks, C stock has a Moderate Buy consensus rating based on 11 Buys and four Hold ratings. Also, the average Citigroup price target of $95.32 implies 8.9% upside potential from current levels.
It is worth noting that these ratings were issued before Citi announced its Q2 results and are subject to change once analysts review their recommendations.
