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Here's What Key Metrics Tell Us About Ally Financial (ALLY) Q2 Earnings
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Ally Financial (ALLY - Free Report) reported $2 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 3.8%. EPS of $0.97 for the same period compares to $0.96 a year ago.
The reported revenue represents a surprise of -1.08% over the Zacks Consensus Estimate of $2.02 billion. With the consensus EPS estimate being $0.62, the EPS surprise was +56.45%.
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:
Total interest-earning assets (Average Balances): $183.71 billion compared to the $184.64 billion average estimate based on five analysts.
Net interest margin (as reported): 3.3% compared to the 3.2% average estimate based on four analysts.
Efficiency Ratio: 64.3% versus the four-analyst average estimate of 62.3%.
Book value per share: $37.84 versus the four-analyst average estimate of $37.83.
Insurance premiums and service revenue earned: $341 million versus the five-analyst average estimate of $345.16 million. The reported number represents a year-over-year change of +10%.
Gain on mortgage and automotive loans, net: $6 million compared to the $6.39 million average estimate based on five analysts. The reported number represents a change of +20% year over year.
Total other revenue: $505 million versus the five-analyst average estimate of $542.27 million. The reported number represents a year-over-year change of -0.2%.
Net financing revenue: $1.50 billion versus $1.48 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -5% change.
Total financing revenue and other interest income: $3.54 billion compared to the $3.62 billion average estimate based on four analysts. The reported number represents a change of +2.4% year over year.
Other income, net of losses: $165 million versus the four-analyst average estimate of $159.87 million. The reported number represents a year-over-year change of 0%.
Other (loss) / gain on investments, net: -$7 million versus $31.95 million estimated by four analysts on average.
Interest on loans held-for-sale: $7 million compared to the $6.88 million average estimate based on three analysts. The reported number represents a change of 0% year over year.
Shares of Ally Financial have returned +11% over the past month versus the Zacks S&P 500 composite's +4.4% 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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Here's What Key Metrics Tell Us About Ally Financial (ALLY) Q2 Earnings
Ally Financial (ALLY - Free Report) reported $2 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 3.8%. EPS of $0.97 for the same period compares to $0.96 a year ago.
The reported revenue represents a surprise of -1.08% over the Zacks Consensus Estimate of $2.02 billion. With the consensus EPS estimate being $0.62, the EPS surprise was +56.45%.
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:
- Total interest-earning assets (Average Balances): $183.71 billion compared to the $184.64 billion average estimate based on five analysts.
- Net interest margin (as reported): 3.3% compared to the 3.2% average estimate based on four analysts.
- Efficiency Ratio: 64.3% versus the four-analyst average estimate of 62.3%.
- Book value per share: $37.84 versus the four-analyst average estimate of $37.83.
- Insurance premiums and service revenue earned: $341 million versus the five-analyst average estimate of $345.16 million. The reported number represents a year-over-year change of +10%.
- Gain on mortgage and automotive loans, net: $6 million compared to the $6.39 million average estimate based on five analysts. The reported number represents a change of +20% year over year.
- Total other revenue: $505 million versus the five-analyst average estimate of $542.27 million. The reported number represents a year-over-year change of -0.2%.
- Net financing revenue: $1.50 billion versus $1.48 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -5% change.
- Total financing revenue and other interest income: $3.54 billion compared to the $3.62 billion average estimate based on four analysts. The reported number represents a change of +2.4% year over year.
- Other income, net of losses: $165 million versus the four-analyst average estimate of $159.87 million. The reported number represents a year-over-year change of 0%.
- Other (loss) / gain on investments, net: -$7 million versus $31.95 million estimated by four analysts on average.
- Interest on loans held-for-sale: $7 million compared to the $6.88 million average estimate based on three analysts. The reported number represents a change of 0% year over year.
View all Key Company Metrics for Ally Financial here>>>Shares of Ally Financial have returned +11% over the past month versus the Zacks S&P 500 composite's +4.4% 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.