Yahoo Finance Ally Financial (ALLY) Beats on Q2 Earnings, Costs Increase
Have you been eager to see how Ally Financial Inc. ALLY performed in Q2 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 83 cents per share, surpassing the Zacks Consensus Estimate of 71 cents.
Higher revenues were largely responsible for improved earnings.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Ally Financial depicted a bearish stance prior to the earnings release. The Zacks Consensus Estimate decreased 1.4% over the last 30 days.
Before posting the earnings beat in Q2, the company delivered positive surprises in all of the trailing four quarters, with an average beat of 11.3%.
Ally Financial Inc. Price and EPS Surprise
Ally Financial Inc. Price and EPS Surprise | Ally Financial Inc. Quote
Lower-than-Expected Revenues
Ally Financial posted total net revenues of $1.46 billion, which was marginally below the Zacks Consensus Estimate of $1.47 billion. Nonetheless, the figure was marginally higher than the prior-year quarter.
Key Statistics
Auto originations of $9.6 billion in the quarter
Retail deposit grew year over year to $81.7 billion as of Jun 30, 2018
Net financing revenue of $1.09 billion, up 2.5% year over year
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) 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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