Don’t get too lazy from the holiday weekend, Citigroup is expected to announced its 2011 fourth quarter earnings tomorrow before the opening bell amid falling consensus estimates by analysts.
The bank is now expected to report earnings of $0.48 per share, down drastically from the consensus of a $0.76 EPS just last week, according to Barclays. Fourth quarter revenue is now expected between $17.48 billion to $19.84 billion. A year ago, Citi reported earnings per share of $0.40 and revenue of $24.67 billion.
JP Morgan’s less-than-stellar earnings report last Friday is exerting clear pressure on estimates for Citi. In addition, the bank has already announced it will take a $700 million charge in the fourth quarter, which will also affect earnings. The charges are from $400 million related to severance payments for 4,500 announced job cuts and $300 million related to a lower Japanese tax rate, according to a report from Oppenheimer’s Chris Kotowski.