This Monday, Oct. 15, 2007, Citigroup (C) will announce its Q3 earnings. Analysts plus anybody who follows the stock market are estimating very low numbers compared to recent quarters. They are figuring numbers to come in around $0.44 earning per share (EPS) compared to $1.06 EPS year to date. The company has also stated:
it expects a 60 percent decline in third-quarter net income, implying profit of $2.2 billion.
My take
It is a consensus that the numbers presented tomorrow will be terrible, but I have a feeling that news will be much better then people anticipate. The stock market is conducted so much on perception, and I think people already know the worse is coming. So these low numbers could already be built into the price. The stock value has already taken such a hit. I think it will be important to pay attention to what Citigroup forecast for their growth and upcoming quarters, and if the EPS come in even just a couple cents above predictions the price might jump even higher.
So if you are a risk taker, this play can spark a quick gain in your portfolio; however, I do recommend that if you are able to pick up some shares before earnings are reported Monday morning then create a stop loss. Also don’t become to greedy, if a gain comes along, then take your money and run.
The stock has already gone up a point in after hours, so I am going to set a buy order for $48.95. Hopefully, I can get some shares at the price (you will have to hope to get some in pre-market hours). If you can’t get shares for around that price, then don’t try to buy it. The higher the price goes, the less chance of making a profit.
Tune in to the call at 8:30 a.m – Q3 2007 Citigroup Inc. Earnings Conference Call