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Ally Financial (ALLY) Q4 Earnings Beats on Higher Revenues

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Have you been eager to see how Ally Financial Inc. (ALLY - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Detroit, Michigan-based automotive financial services company’s earnings release this morning:

An Earnings Beat

Ally Financial came out with adjusted earnings of 54 cents per share, beating the Zacks Consensus Estimate of 49 cents.

Higher revenues were largely responsible for this earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Ally Financial depicted a bearish stance to the earnings release. The Zacks Consensus Estimate has decreased nearly 2% over the last 30 days.

Before posting the earnings beat in Q4, the company delivered positive surprises in two of the trailing four quarters, with an average negative surprise of 1.2%.

Ally Financial Inc. Price and EPS Surprise

 

Ally Financial Inc. Price and EPS Surprise | Ally Financial Inc. Quote

Revenues Meet Expectations

Ally Financial posted total net revenues of $1.37 billion, in line with Zacks Consensus Estimate. Also, it was above the prior-year quarter figure of $1.33 billion.

Key Statistics
 

  • Auto originations of $36 billion in 2016
  • Retail deposit growth of 20% year over year to $66.6 billion as of Dec 31, 2016
  • Net financing revenue of $976 million, up 5% year over year in 2016


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #5 (Strong Sell) for Ally Financial. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.)

Check back later for our full write up on this Ally Financial earnings report!

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