Citigroup Q2 2012 Earnings: Company Beats Estimates, Is A Potential Buy At 0.5x Tangible Book Value Per Share

[First appeared on Seeking Alpha on July 16, 2012]

Citigroup (C) was the third major bank to report Q2 2012 earnings (see our analysis of JPMorgan and Wells Fargo). Citigroup reported results that beat expectations, but were down from a year ago. Citigroup's results, like the results of its peers, show that it is managing to navigate through this difficult period and improve its operations.

Citigroup's valuation of 0.5x Tangible Book Value Per Share demonstrates investor concern about its balance sheet and doubts about its operating performance. However, if Citigroup can continue on its present trajectory, the current stock price may represent a good buying opportunity. In this update, we will examine Citigroup's results using our six question checklist. In addition, we will discuss comments from Vikram Pandit, Citigroup's CEO, about the U.S. and global economies.

As we review Citigroup's Q2 2012 earnings, we are looking for clues about whether reduced expectations by analysts and investors take into account the pessimistic outlook for the global economy, or if expectations need to be lowered further.

To continue reading, please click here.