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Ally Financial (ALLY) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

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Ally Financial (ALLY - Free Report) reported $1.97 billion in revenue for the quarter ended September 2023, representing a year-over-year decline of 2.4%. EPS of $0.83 for the same period compares to $1.12 a year ago.

The reported revenue represents a surprise of -3.53% over the Zacks Consensus Estimate of $2.04 billion. With the consensus EPS estimate being $0.80, the EPS surprise was +3.75%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Ally Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net charge-offs to average finance receivables and loans outstanding: 1.3% versus the five-analyst average estimate of 1.3%.
  • Net interest margin (as reported): 3.2% versus 3.3% estimated by five analysts on average.
  • Efficiency Ratio: 62.6% compared to the 57.1% average estimate based on five analysts.
  • Total interest-earning assets (Average Balances): $187.92 billion versus $187.98 billion estimated by five analysts on average.
  • Total net revenue- Automotive Finance: $1.44 billion versus the two-analyst average estimate of $1.36 billion. The reported number represents a year-over-year change of +4.5%.
  • Total net revenue- Insurance: $322 million versus $381.93 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +23.9% change.
  • Total net revenue- Mortgage Finance: $57 million versus the two-analyst average estimate of $58.21 million. The reported number represents a year-over-year change of -10.9%.
  • Revenue- Automotive Finance operations- Net financing revenue: $1.36 billion versus the two-analyst average estimate of $1.19 billion.
  • Revenue- Mortgage Finance operations- Other revenue: $4 million versus $5.33 million estimated by two analysts on average.
  • Revenue- Insurance operations- Net financing revenue: $29 million versus the two-analyst average estimate of $30.52 million.
  • Revenue- Insurance operations- Other revenue: $293 million versus $323.91 million estimated by two analysts on average.
  • Revenue- Mortgage Finance operations- Net financing revenue: $53 million compared to the $52.89 million average estimate based on two analysts.
View all Key Company Metrics for Ally Financial here>>>

Shares of Ally Financial have returned -10.5% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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