Why Citizens Financial Shares Are Sliding Today
Portfolio Pulse from Lekha Gupta
Citizens Financial Group Inc (CFG) shares dropped after reporting Q4 FY23 earnings with a 10% Y/Y revenue decline to $1.988 billion, missing estimates. Net interest income fell 12% Y/Y, and adjusted net income decreased 38% Y/Y, although adjusted EPS beat estimates. The company announced a quarterly dividend of $0.42 per share and expects to resume share repurchases in Q1 FY24. FY24 outlook anticipates a 6%-9% Y/Y decline in net interest income.
January 17, 2024 | 1:31 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Citizens Financial Group's stock declined after reporting lower-than-expected Q4 FY23 revenue and a decrease in net interest income and adjusted net income. The company declared a quarterly dividend and plans to resume share buybacks in Q1 FY24.
The stock price is likely to go down in the short term due to the reported decline in revenue and net interest income, which are key indicators of a bank's financial health. The missed revenue estimates and the decline in net income are negative signals to investors, despite the positive note of a declared dividend and the resumption of share buybacks. The outlook for FY24 also suggests a continued decline in net interest income, which may further impact investor sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100