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Compared to Estimates, Ally Financial (ALLY) Q3 Earnings: A Look at Key Metrics
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Ally Financial (ALLY - Free Report) reported $2.1 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 6.9%. EPS of $0.95 for the same period compares to $0.83 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.06 billion, representing a surprise of +2.01%. The company delivered an EPS surprise of +66.67%, with the consensus EPS estimate being $0.57.
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.
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 interest margin (as reported): 3.2% versus 3.3% estimated by four analysts on average.
Efficiency Ratio: 58.3% compared to the 58.6% average estimate based on four analysts.
Book value per share: $40.70 versus $38.93 estimated by four analysts on average.
Net charge-offs to average finance receivables and loans outstanding: 1.5% versus 1.6% estimated by four analysts on average.
Gain on mortgage and automotive loans, net: $6 million versus $5.71 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +50% change.
Net financing revenue: $1.49 billion compared to the $1.51 billion average estimate based on five analysts. The reported number represents a change of -2.9% year over year.
Total other revenue: $615 million compared to the $552.07 million average estimate based on five analysts. The reported number represents a change of +41.4% year over year.
Insurance premiums and service revenue earned: $359 million versus $344.37 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +12.2% change.
Total financing revenue and other interest income: $3.57 billion compared to the $3.62 billion average estimate based on four analysts. The reported number represents a change of -0.6% year over year.
Other (loss) / gain on investments, net: $74 million versus the four-analyst average estimate of $37.55 million. The reported number represents a year-over-year change of -280.5%.
Other income, net of losses: $176 million versus the four-analyst average estimate of $158.44 million. The reported number represents a year-over-year change of +15.8%.
Interest on loans held-for-sale: $5 million versus $7.19 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -28.6% change.
Shares of Ally Financial have returned +2.5% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Compared to Estimates, Ally Financial (ALLY) Q3 Earnings: A Look at Key Metrics
Ally Financial (ALLY - Free Report) reported $2.1 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 6.9%. EPS of $0.95 for the same period compares to $0.83 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.06 billion, representing a surprise of +2.01%. The company delivered an EPS surprise of +66.67%, with the consensus EPS estimate being $0.57.
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.
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 interest margin (as reported): 3.2% versus 3.3% estimated by four analysts on average.
- Efficiency Ratio: 58.3% compared to the 58.6% average estimate based on four analysts.
- Book value per share: $40.70 versus $38.93 estimated by four analysts on average.
- Net charge-offs to average finance receivables and loans outstanding: 1.5% versus 1.6% estimated by four analysts on average.
- Gain on mortgage and automotive loans, net: $6 million versus $5.71 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +50% change.
- Net financing revenue: $1.49 billion compared to the $1.51 billion average estimate based on five analysts. The reported number represents a change of -2.9% year over year.
- Total other revenue: $615 million compared to the $552.07 million average estimate based on five analysts. The reported number represents a change of +41.4% year over year.
- Insurance premiums and service revenue earned: $359 million versus $344.37 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +12.2% change.
- Total financing revenue and other interest income: $3.57 billion compared to the $3.62 billion average estimate based on four analysts. The reported number represents a change of -0.6% year over year.
- Other (loss) / gain on investments, net: $74 million versus the four-analyst average estimate of $37.55 million. The reported number represents a year-over-year change of -280.5%.
- Other income, net of losses: $176 million versus the four-analyst average estimate of $158.44 million. The reported number represents a year-over-year change of +15.8%.
- Interest on loans held-for-sale: $5 million versus $7.19 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -28.6% change.
View all Key Company Metrics for Ally Financial here>>>Shares of Ally Financial have returned +2.5% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.