ALLY Earnings Prediction
The chart below shows how ALLY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ALLY sees a -4.30% change in stock price 10 days leading up to the earnings, and a +0.45% change 10 days following the report. On the earnings day itself, the stock moves by +3.72%. This data can give you a slight idea of what to expect for the next quarter's release.
ALLY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.25B
-1.92%
-2.09%
Gross Margin
--
--
--
Operating Margin
10.11%
30.79%
16.61%
Net Margin
4.85%
44.35%
-68.83%
EPS
0.26
62.50%
-75.47%
No Data Available
ALLY Earnings Analysis
Ally Financial Inc Corporation (ALLY.N) Earnings Conference Call
Positive
Strong Financial Performance: Adjusted EPS for 2024 was $2.35, with core pretax income reaching $1 billion and total revenues of $8.2 billion, indicating strong financial performance.
Auto Finance Consumer Originations: Consumer originations in auto finance totaled $39 billion, sourced from a record 14.6 million applications, showcasing robust dealer relationships and strong application flow.
Record Insurance Premiums: Insurance written premiums reached $1.5 billion, the highest since the IPO, driven by new relationships and growth in inventory exposure.
Record Pre-Tax Income: Corporate Finance achieved record pre-tax income exceeding $400 million with a return on equity of 37%, demonstrating the quality of the loan book with zero net charge-offs.
Deposit Growth and Customer Satisfaction: Deposits grew by over $1 billion year-over-year, serving 3.3 million depositors with total balances of $143 billion, reflecting strong customer growth and satisfaction.
Negative
Credit Quality Deterioration: Provision expense of $557,000,000 was down year over year, but retail auto net charge offs of 234 basis points were up 10 basis points quarter over quarter, indicating a deterioration in credit quality.
Goodwill Impairment Loss: The company recognized a $118,000,000 goodwill impairment related to the pending sale of the credit card business, reflecting a significant loss in asset value.
Workforce Reduction Impact: A restructuring charge of $22,000,000 was incurred due to a workforce reduction, highlighting ongoing challenges in cost management despite expected annualized savings of $60,000,000.
Accounting Methodology Impact: The change in accounting methodology for EV lease tax credits reduced retained earnings by approximately $300,000,000 and CET1 by 20 basis points, negatively impacting capital metrics.
NIM Decline Forecast: The guidance for 2025 NIM was impacted by the sale of the credit card business, which is expected to lower NIM by approximately 15 basis points, indicating a potential decline in profitability.
ALLY FAQs
How does ALLY typically perform around its earnings report dates?
Is Ally Financial Inc (ALLY) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
ALLY Earning Call Sentiment
Earnings call transcript: Ally Financial Q4 2024 beats EPS expectations
ALLY.N
0.53%Positive
The earnings call presents a mixed picture: strong insurance premiums, consistent dividend, and potential capital gains from a credit card sale are positives. However, uncertainties in credit performance, market competition, and unclear restructuring details are concerning. The Q&A section reveals cautious optimism but lacks clarity on key issues. Given these factors, the stock price is likely to remain stable, resulting in a neutral sentiment.
