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Ally Financial (ALLY) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended March 2023, Ally Financial (ALLY - Free Report) reported revenue of $2.1 billion, down 1.6% over the same period last year. EPS came in at $0.82, compared to $2.03 in the year-ago quarter.
The reported revenue represents a surprise of +2.52% over the Zacks Consensus Estimate of $2.05 billion. With the consensus EPS estimate being $0.88, the EPS surprise was -6.82%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: 1.2% compared to the 1.23% average estimate based on four analysts.
Total interest-earning assets (Average Balances): $184.89 billion compared to the $184.86 billion average estimate based on four analysts.
Efficiency Ratio: 60.3% versus 58.23% estimated by four analysts on average.
Net interest margin (as reported): 3.51% versus 3.39% estimated by four analysts on average.
Net financing revenue (as reported): $1.60 billion compared to the $1.57 billion average estimate based on eight analysts.
Total other revenue: $498 million versus the six-analyst average estimate of $488.36 million.
Gain on mortgage and automotive loans, net: $4 million versus the five-analyst average estimate of $15.32 million.
Other income, net of losses: $114 million versus the five-analyst average estimate of $152.79 million.
Insurance premiums and service revenue earned: $306 million versus the four-analyst average estimate of $322.40 million.
Total financing revenue and other interest income: $3.29 billion compared to the $3.15 billion average estimate based on four analysts.
Total interest and dividends on investment securities: $226 million compared to the $223.58 million average estimate based on three analysts.
Operating leases: $402 million compared to the $394.35 million average estimate based on three analysts.
Shares of Ally Financial have returned +6.1% over the past month versus the Zacks S&P 500 composite's +6.2% 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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Ally Financial (ALLY) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended March 2023, Ally Financial (ALLY - Free Report) reported revenue of $2.1 billion, down 1.6% over the same period last year. EPS came in at $0.82, compared to $2.03 in the year-ago quarter.
The reported revenue represents a surprise of +2.52% over the Zacks Consensus Estimate of $2.05 billion. With the consensus EPS estimate being $0.88, the EPS surprise was -6.82%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: 1.2% compared to the 1.23% average estimate based on four analysts.
- Total interest-earning assets (Average Balances): $184.89 billion compared to the $184.86 billion average estimate based on four analysts.
- Efficiency Ratio: 60.3% versus 58.23% estimated by four analysts on average.
- Net interest margin (as reported): 3.51% versus 3.39% estimated by four analysts on average.
- Net financing revenue (as reported): $1.60 billion compared to the $1.57 billion average estimate based on eight analysts.
- Total other revenue: $498 million versus the six-analyst average estimate of $488.36 million.
- Gain on mortgage and automotive loans, net: $4 million versus the five-analyst average estimate of $15.32 million.
- Other income, net of losses: $114 million versus the five-analyst average estimate of $152.79 million.
- Insurance premiums and service revenue earned: $306 million versus the four-analyst average estimate of $322.40 million.
- Total financing revenue and other interest income: $3.29 billion compared to the $3.15 billion average estimate based on four analysts.
- Total interest and dividends on investment securities: $226 million compared to the $223.58 million average estimate based on three analysts.
- Operating leases: $402 million compared to the $394.35 million average estimate based on three analysts.
View all Key Company Metrics for Ally Financial here>>>Shares of Ally Financial have returned +6.1% over the past month versus the Zacks S&P 500 composite's +6.2% 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.