We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's What Key Metrics Tell Us About Ally Financial (ALLY) Q2 Earnings
Read MoreHide Full Article
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.