Improving consumer credit trends will be the key going forward given Citi’s large consumer loan exposure.
After easily exceeding Wall Street’s consensus estimates the last two quarters, we expect Citigroup to only marginally exceed the Street’s expectations this quarter.
So now all eyes are focused on the twelve Dow stocks that report earnings this week. Should we expect more strong results or are these stocks going to deliver earnings misses that will sink the market? Here are exclusive earnings previews of these Dow stocks second quarter results:
Citigroup’s large exposure to the consumer credit markets (in particular their mortgage and credit card businesses) will likely lead to further losses in the foreseeable future.
With Home Depot and Hewlett Packard both reporting earnings last week, we have now had all 30 of the Dow stock components report their first quarter results.
We anticipate that loan losses will continue to mount for Citigroup despite the big rally in the stock price after the company announced that they were profitable during January and February.
