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Compared to Estimates, Ally Financial (ALLY) Q2 Earnings: A Look at Key Metrics
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Ally Financial (ALLY - Free Report) reported $2.08 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 0.1%. EPS of $0.96 for the same period compares to $1.76 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.09 billion, representing a surprise of -0.76%. The company delivered an EPS surprise of +2.13%, with the consensus EPS estimate being $0.94.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: 1.16% versus 1.16% estimated by four analysts on average.
Total interest-earning assets (Average Balances): $186.66 billion compared to the $186.24 billion average estimate based on four analysts.
Efficiency Ratio: 60.1% versus 57.56% estimated by four analysts on average.
Net interest margin (as reported): 3.38% versus 3.42% estimated by four analysts on average.
Total net revenue- Automotive Finance: $1.43 billion versus $1.26 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.3% change.
Total net revenue- Insurance: $366 million versus the two-analyst average estimate of $369.13 million. The reported number represents a year-over-year change of +105.6%.
Total net revenue- Mortgage Finance: $58 million compared to the $58.98 million average estimate based on two analysts. The reported number represents a change of -3.3% year over year.
Revenue- Automotive Finance operations- Net financing revenue: $1.35 billion compared to the $1.17 billion average estimate based on two analysts.
Revenue- Mortgage Finance operations- Other revenue: $5 million versus the two-analyst average estimate of $5.55 million. The reported number represents a year-over-year change of +25%.
Revenue- Insurance operations- Net financing revenue: $29 million versus $28.26 million estimated by two analysts on average.
Revenue- Insurance operations- Other revenue: $337 million compared to the $340.87 million average estimate based on two analysts. The reported number represents a change of +113.3% year over year.
Revenue- Mortgage Finance operations- Net financing revenue: $53 million compared to the $53.44 million average estimate based on two analysts.
Shares of Ally Financial have returned +1.2% over the past month versus the Zacks S&P 500 composite's +3.4% 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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Compared to Estimates, Ally Financial (ALLY) Q2 Earnings: A Look at Key Metrics
Ally Financial (ALLY - Free Report) reported $2.08 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 0.1%. EPS of $0.96 for the same period compares to $1.76 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.09 billion, representing a surprise of -0.76%. The company delivered an EPS surprise of +2.13%, with the consensus EPS estimate being $0.94.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: 1.16% versus 1.16% estimated by four analysts on average.
- Total interest-earning assets (Average Balances): $186.66 billion compared to the $186.24 billion average estimate based on four analysts.
- Efficiency Ratio: 60.1% versus 57.56% estimated by four analysts on average.
- Net interest margin (as reported): 3.38% versus 3.42% estimated by four analysts on average.
- Total net revenue- Automotive Finance: $1.43 billion versus $1.26 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.3% change.
- Total net revenue- Insurance: $366 million versus the two-analyst average estimate of $369.13 million. The reported number represents a year-over-year change of +105.6%.
- Total net revenue- Mortgage Finance: $58 million compared to the $58.98 million average estimate based on two analysts. The reported number represents a change of -3.3% year over year.
- Revenue- Automotive Finance operations- Net financing revenue: $1.35 billion compared to the $1.17 billion average estimate based on two analysts.
- Revenue- Mortgage Finance operations- Other revenue: $5 million versus the two-analyst average estimate of $5.55 million. The reported number represents a year-over-year change of +25%.
- Revenue- Insurance operations- Net financing revenue: $29 million versus $28.26 million estimated by two analysts on average.
- Revenue- Insurance operations- Other revenue: $337 million compared to the $340.87 million average estimate based on two analysts. The reported number represents a change of +113.3% year over year.
- Revenue- Mortgage Finance operations- Net financing revenue: $53 million compared to the $53.44 million average estimate based on two analysts.
View all Key Company Metrics for Ally Financial here>>>Shares of Ally Financial have returned +1.2% over the past month versus the Zacks S&P 500 composite's +3.4% 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.