![]()
| As of Friday, November 13th: |
As of October 1st, the earnings growth rate was at -24.7%.Of the 463 S&P 500 companies who have reported Q3, 80% beat estimates, 6% were in-line, and 14% were below estimates. The blended earnings growth rate for the S&P 500 for Q3 2009 is currently at -13.8%. (Data provided by Thomson Reuters)
LATEST EARNINGS RESULTS
- Obama Nudges Hu on Yuan; to Ease Trade Tensions
- Fed's Kohn Sees No Asset Bubbles Building in US
- Stocks May Rise Further after Fed Waves on 'Risk Trade'
- Buffett's Berkshire Hathaway Boosts Stake in Wal-Mart
- Microsoft Co-founder Allen Diagnosed with Cancer
- Time Warner to Spin Off AOL on December 9
- Gates Boosts Waste Management, Coca Cola Stakes
- US Cities With Most Underwater Mortgages
- What's Kept Stock Rally Going? Fear, Not Confidence
- Answers to Your Questions: A Path to Economic Disaster?
- 5 Ways to Play the Chinese Markets: Analyst
- Meredith Whitney: Turns Bearish
- 3 Stock Plays on Rising College Costs
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
- Nov. 16: Unusual Volume Leaders
- Getting to the Heart of the Merck-Abbott Embargo Break
- What MGM's Sale Could Say About Value of Content
- My Ratings on Lowe's & Home Depot: Analyst
MOST SHARED
- Stocks Overvalued, Recession Will Return: Meredith Whitney
- Has Twitter's Finest Hours (Seconds) Come and Gone?
- U.S. May Wind Up Green With Envy
- US Top Banks Warn Congress on 'Break-Up' Risks
- Time Warner to Spin Off AOL on December 9
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- Paulson Betting Unemployment Not Getting Much Worse?
- Stocks May Rise Further after Fed Waves on 'Risk Trade'
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
- Obama Nudges Hu on Yuan; Agree to Ease Trade Tensions
Citigroup, the largest U.S. bank by market value, said Monday its third-quarter net income will drop 60% on losses and writedowns stemming from subprime and leveraged loan woes, fixed income trading, as well as weakness in its consumer business.
![]() |
Mark Lennihan / AP Citigroup reported that its third-quarter income fell 60%. |
Citi [C
Loading...
()
] shares were up 1.8% at $47.51 despite the warning, after Charles Prince, the bank's embattled chief executive, said he expected the bank "to return to a normal earnings environment in the fourth quarter."
Analysts said they were betting that like weaker results last month at investment banks like Goldman Sachs [GS
Loading...
()
] and Lehman Brothers [LEH
Loading...
()
] , Citi's stumble could be a one-off thing.
"I think the market is looking past this third-quarter number really and banking on the notion that credit conditions have improved and that this is really a one-time hit," said Bill Fitzpatrick, an analyst at Johnson Asset Management.
"If we return to more normal conditions, Citigroup should be back to business as usual here in the very near future."
Prince said the decline had been driven "by weak performance in fixed-income credit market activities, write-downs in leveraged loan commitments, and increases in consumer credit costs."
Among the principal culprits for the warning were $1.4 billion in pre-tax write-downs on loan commitments to unrated or junk-rated companies, known as leveraged loans.
Citi also said it was taking $1.3 billion in pretax losses on the value of leveraged loans and subprime mortgage bonds it had planned to repackage into bonds called collateralized debt obligations.
'Below Expectations'
But Citi acknowledged that its performance was disappointing even considering the market turmoil.
"As is evident, the market disruption had a severe impact on our results in markets and banking," Chief Financial Officer Gary Crittenden said in a recorded call. "However our performance was below expectations even taking into account turbulent market conditions."
The profit warning is likely to put renewed pressure on Prince, who this week marks his fourth anniversary at the helm of the banking group and who has in the past been criticized by some shareholders for its share underperformance and cost growth outpacing profit increases.
"The speculation had been that Prince was under pressure to get Citi back together sooner rather than later," said David Katz, chief investment officer at Matrix Asset Advisors in New York. "This puts a lot of attention on him."
Prince made headlines in July when, asked by the Financial Times newspaper about the possibility of a retreat from the leveraged loan markets, said the bank was "still dancing."
The bad news for Citi was not restricted to leveraged loans and subprime. The bank also said its consumer division would see a $2.6 billion increase in credit costs "with approximately one-quarter of the increase driven by higher net credit losses and approximately three-quarters driven by higher charges to increase loan loss reserves."
"Our reserves will continue to reflect the economic environment, credit performance in our portfolio and portfolio growth," he said.
Citi shares are down about 16% so far this year, compared with a 9.8% decline in the Philadelphia KBW Bank Index.
- JC Penney Profit Falls, but Shares Up on Forecast
U.S. department store operator JC Penney forecast earnings for the holiday quarter that could surpass Wall Street expectations, and its shares rose about 8 percent on Friday.
- Disney Profit, Sales Top Forecasts; Shares Jump
Walt Disney shares rose in after-hours trading Thursday after the company reported earnings and revenue that beat analysts' expectations.
- Nordstrom Earnings Miss Forecasts; Shares Take Hit
Nordstrom reported earnings that missed analysts expectations by a penny but beat on revenue, causing the company's shares to fall in after-hours trading.
- JC Penney Profit Falls, but Shares Up on Forecast
- Wal-Mart Holiday Forecast Light, Profit Beats
Wal-Mart Stores posted a higher-than-expected quarterly profit, but forecast earnings during the key holiday quarter that could miss Wall Street estimates as its customers face rising unemployment.
- Wal-Mart Holiday Forecast Light, Profit Beats
- Kohl's Profit Beats Street, But Outlook Falls Short
- Vivendi Profit Up More Than 5%, Keeps 2009 Goals
- Cost Cuts Help BT to Raise Full-Year Guidance
- Applied Materials Profit, Sales Top Wall Street Forecasts
- Macy's Loss Beats Estimates, But Shares Fall on Outlook
- Vodafone Extends Cost-Cutting Scheme, Hits Targets
- Tyco International Profit Falls Less Than Expected
- EA Profit Beats Street, Announces Job Cuts
- Priceline Crushes Profit Forecasts; Shares Jump
- Berkshire Hathaway Says Net Income Tripled
- Sun Micro Sales Fall as Oracle Deal Remains Delayed
- AIG in the Black Again, Operating Profit Tops View
- Starbucks Profit Beats Forecasts; Shares Rise
- Fannie Mae Seeks $15 Billion in Aid After Posting Loss
- Nvidia Profit, Sales Top Wall Street's Forecast








