Benzinga | Jul 13, 2021 10:13AM EDT

Citigroup's Earnings Outlook

Citigroup (NYSE:C) unveils its next round of earnings this Wednesday, July 14. Get prepared with Benzinga's ultimate preview for Citigroup's Q2 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Citigroup management projections, analysts predict EPS of $1.96 on revenue of $17.20 billion. In the same quarter last year, Citigroup announced EPS of $0.5 on revenue of $19.77 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 292.0% increase in the company's EPS figure. Sales would be down 12.98% on a year-over-year basis. Citigroup's reported EPS has stacked up against analyst estimates in the past like this: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 2.60 1.34 0.92 0.28EPS Actual 3.62 2.08 1.40 0.50Revenue Estimate 18.82 B 16.71 B 17.22 B 19.11 BRevenue Actual 19.33 B 16.50 B 17.30 B 19.77 B

Stock Performance

Over the last 52-week period, shares of Citigroup are up 33.49%.

Do not be surprised to see the stock move on comments made during its conference call. Citigroup is scheduled to hold the call at 10:00:00 ET and can be accessed here.