Wall Street analysts expect Ally Financial (ALLY) to post quarterly earnings of $0.36 per share in its upcoming report, which indicates a year-over-year decline of 56.1%. Revenues are expected to be $1.96 billion, down 6.6% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 3.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Ally Financial metrics that Wall Street analysts commonly model and monitor.
The average prediction of analysts places 'Gain on mortgage and automotive loans, net' at $3.62 million. The estimate indicates a change of -9.6% from the prior-year quarter.
Analysts predict that the 'Total other revenue' will reach $505.88 million. The estimate indicates a year-over-year change of +1.6%.
The consensus estimate for 'Insurance premiums and service revenue earned' stands at $331.80 million. The estimate points to a change of +8.4% from the year-ago quarter.
According to the collective judgment of analysts, 'Total financing revenue and other interest income' should come in at $3.58 billion. The estimate suggests a change of +8.8% year over year.
It is projected by analysts that the 'Other income, net of losses' will reach $133.15 million. The estimate indicates a change of +16.8% from the prior-year quarter.
The consensus among analysts is that 'Interest on loans held-for-sale' will reach $8.34 million. The estimate indicates a change of -44.4% from the prior-year quarter.
Analysts forecast 'Total interest-earning assets (Average Balances)' to reach $185.46 billion. The estimate is in contrast to the year-ago figure of $184.89 billion.
The collective assessment of analysts points to an estimated 'Net interest margin (as reported)' of 3.2%. The estimate is in contrast to the year-ago figure of 3.5%.
Based on the collective assessment of analysts, 'Efficiency Ratio' should arrive at 63.2%. Compared to the present estimate, the company reported 60.3% in the same quarter last year.
Analysts expect 'Non-performing loans (NPLs)' to come in at $1.27 billion. Compared to the current estimate, the company reported $1.38 billion in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Total Capital Ratio' will likely reach 12.4%. Compared to the present estimate, the company reported 12.5% in the same quarter last year.
Analysts' assessment points toward 'Tier 1 Capital Ratio' reaching 10.7%. The estimate compares to the year-ago value of 10.7%.
View all Key Company Metrics for Ally Financial here>>>
Shares of Ally Financial have demonstrated returns of -1% over the past month compared to the Zacks S&P 500 composite's -0.9% change. With a Zacks Rank #3 (Hold), ALLY is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Wall Street analysts expect Ally Financial (ALLY) to post quarterly earnings of $0.36 per share in its upcoming report, which indicates a year-over-year decline of 56.1%. Revenues are expected to be $1.96 billion, down 6.6% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 3.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Ally Financial metrics that Wall Street analysts commonly model and monitor.
The average prediction of analysts places 'Gain on mortgage and automotive loans, net' at $3.62 million. The estimate indicates a change of -9.6% from the prior-year quarter.
Analysts predict that the 'Total other revenue' will reach $505.88 million. The estimate indicates a year-over-year change of +1.6%.
The consensus estimate for 'Insurance premiums and service revenue earned' stands at $331.80 million. The estimate points to a change of +8.4% from the year-ago quarter.
According to the collective judgment of analysts, 'Total financing revenue and other interest income' should come in at $3.58 billion. The estimate suggests a change of +8.8% year over year.
It is projected by analysts that the 'Other income, net of losses' will reach $133.15 million. The estimate indicates a change of +16.8% from the prior-year quarter.
The consensus among analysts is that 'Interest on loans held-for-sale' will reach $8.34 million. The estimate indicates a change of -44.4% from the prior-year quarter.
Analysts forecast 'Total interest-earning assets (Average Balances)' to reach $185.46 billion. The estimate is in contrast to the year-ago figure of $184.89 billion.
The collective assessment of analysts points to an estimated 'Net interest margin (as reported)' of 3.2%. The estimate is in contrast to the year-ago figure of 3.5%.
Based on the collective assessment of analysts, 'Efficiency Ratio' should arrive at 63.2%. Compared to the present estimate, the company reported 60.3% in the same quarter last year.
Analysts expect 'Non-performing loans (NPLs)' to come in at $1.27 billion. Compared to the current estimate, the company reported $1.38 billion in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Total Capital Ratio' will likely reach 12.4%. Compared to the present estimate, the company reported 12.5% in the same quarter last year.
Analysts' assessment points toward 'Tier 1 Capital Ratio' reaching 10.7%. The estimate compares to the year-ago value of 10.7%.
View all Key Company Metrics for Ally Financial here>>>
Shares of Ally Financial have demonstrated returns of -1% over the past month compared to the Zacks S&P 500 composite's -0.9% change. With a Zacks Rank #3 (Hold), ALLY is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up