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Ally Financial (ALLY) to Report Q2 Earnings: What's in Store?
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Ally Financial Inc. (ALLY - Free Report) is slated to report second-quarter 2022 results on Jul 19, before the opening bell. While its earnings in the to-be-reported quarter are expected to have declined on a year-over-year basis, revenues are likely to have increased.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were aided by an improvement in revenues, partly offset by a rise in expenses and higher provisions.
Ally Financial has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 16.6%.
The Zacks Consensus Estimate for ALLY’s net financing revenues (as reported) is pegged at $1.71 billion, suggesting 1.2% growth sequentially.
Looking at the fee income components, the consensus estimate of $284 million for insurance premiums and service revenues earned suggests a rise of 1.4% sequentially. The Zacks Consensus Estimate for net gain on mortgage and automotive loans of $14.37 million indicates a rise of 2.6% from the previous quarter’s reported figure.
The consensus estimate for net other gains on investments is pegged at $40.43 million, indicating a substantial sequential rise. The consensus estimate for net other income of $151 million suggests a 5.6% rise.
Due to an anticipated rise in almost all fee income components, total non-interest income is expected to have increased in the quarter. The Zacks Consensus Estimate for total non-interest income is pegged at $484 million, suggesting a sequential rise of 9.5%.
Management expects other revenues to be in the mid-$400-million range.
Coming to expenses, Ally Financial has been witnessing persistent growth in expenses over the past several quarters. As it launches products and seeks to expand into newer areas of operations, overall costs are likely to have been elevated in the second quarter.
Earnings Whispers
According to our proven model, the chances of Ally Financial beating the Zacks Consensus Estimate this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Ally Financial is -0.17%.
Zacks Rank: The company currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $1.90, which has been revised 3.1% lower over the past 30 days. The figure indicates a decline of 18.5% from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $2.21 billion, suggesting a year-over-year rise of 6.1%.
Stocks That Warrant a Look
A couple of finance stocks, which you may want to consider, as these have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Truist Financial (TFC - Free Report) and Bank OZK (OZK - Free Report) .
The Earnings ESP for Truist Financial is +0.62% and it carries a Zacks Rank #3 at present. The company is slated to report second-quarter 2022 results on Jul 19.
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Ally Financial (ALLY) to Report Q2 Earnings: What's in Store?
Ally Financial Inc. (ALLY - Free Report) is slated to report second-quarter 2022 results on Jul 19, before the opening bell. While its earnings in the to-be-reported quarter are expected to have declined on a year-over-year basis, revenues are likely to have increased.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were aided by an improvement in revenues, partly offset by a rise in expenses and higher provisions.
Ally Financial has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 16.6%.
Ally Financial Inc. Price and EPS Surprise
Ally Financial Inc. price-eps-surprise | Ally Financial Inc. Quote
Key Estimates for Q2
The Zacks Consensus Estimate for ALLY’s net financing revenues (as reported) is pegged at $1.71 billion, suggesting 1.2% growth sequentially.
Looking at the fee income components, the consensus estimate of $284 million for insurance premiums and service revenues earned suggests a rise of 1.4% sequentially. The Zacks Consensus Estimate for net gain on mortgage and automotive loans of $14.37 million indicates a rise of 2.6% from the previous quarter’s reported figure.
The consensus estimate for net other gains on investments is pegged at $40.43 million, indicating a substantial sequential rise. The consensus estimate for net other income of $151 million suggests a 5.6% rise.
Due to an anticipated rise in almost all fee income components, total non-interest income is expected to have increased in the quarter. The Zacks Consensus Estimate for total non-interest income is pegged at $484 million, suggesting a sequential rise of 9.5%.
Management expects other revenues to be in the mid-$400-million range.
Coming to expenses, Ally Financial has been witnessing persistent growth in expenses over the past several quarters. As it launches products and seeks to expand into newer areas of operations, overall costs are likely to have been elevated in the second quarter.
Earnings Whispers
According to our proven model, the chances of Ally Financial beating the Zacks Consensus Estimate this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Ally Financial is -0.17%.
Zacks Rank: The company currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $1.90, which has been revised 3.1% lower over the past 30 days. The figure indicates a decline of 18.5% from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $2.21 billion, suggesting a year-over-year rise of 6.1%.
Stocks That Warrant a Look
A couple of finance stocks, which you may want to consider, as these have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Truist Financial (TFC - Free Report) and Bank OZK (OZK - Free Report) .
The Earnings ESP for Truist Financial is +0.62% and it carries a Zacks Rank #3 at present. The company is slated to report second-quarter 2022 results on Jul 19.
Bank OZK is scheduled to release second-quarter 2022 earnings on Jul 21. The company, which carries a Zacks Rank #2 (Buy) at present, has an Earnings ESP of +2.69%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.