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 -5.37% change in stock price 10 days leading up to the earnings, and a +0.67% change 10 days following the report. On the earnings day itself, the stock moves by +4.35%. 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
1.78B
-18.97%
-20.49%
Gross Margin
--
--
--
Operating Margin
1.18%
-80.50%
-90.69%
Net Margin
-12.63%
-276.89%
103.38%
EPS
-0.82
-295.24%
51.85%
No Data Available
ALLY Earnings Analysis
Ally Financial Inc Corporation (ALLY.N) Earnings Conference Call
Positive
Earnings Surprise: Ally Financial Inc. beats earnings expectations with reported EPS of $0.58, exceeding expectations of $0.43.
Employee Satisfaction Recognition: Fortune magazine recognized Ally as one of the best 100 companies to work for, with 90% of employees believing it is a great place to work, significantly higher than the US average.
Brand Strength and Sentiment: Ally's brand strength is highlighted by Net Promoter Scores well ahead of industry averages and positive brand social sentiment nearly at 90%.
WNBA Partnership Announcement: The company announced a multiyear partnership with the WNBA, reinforcing its commitment to brand strength and community engagement.
Auto Finance Originations Surge: Ally's auto finance business achieved consumer originations of $10.2 billion, driven by a record application volume of 3.8 billion, showcasing strong dealer relationships.
Insurance Premium Growth: The insurance segment reported written premiums of $385 million, a 9% year-over-year increase, benefiting from new relationships and growth in P&C exposure.
Pre-Tax Income Resilience: Corporate finance delivered a pre-tax income of $76 million with a 25% return on equity, demonstrating resilience across economic cycles.
Customer Growth and Deposits: Ally's digital bank serves 3.3 million customers with deposits reaching $146 billion, up nearly $3 billion quarter over quarter, reflecting strong customer growth.
Net Interest Margin Increase: The company reported a net interest margin of 3.35%, up two basis points from the previous quarter, indicating effective management of interest rate risk.
Strong Capital Position: Ally's CET1 capital ratio stands at 9.5%, representing $3.7 billion of excess capital, indicating a strong capital position.
Decline in Charge-Off Rate: The consolidated net charge-off rate declined to 150 basis points, reflecting improved credit quality and effective risk management strategies.
Negative
Financing Revenue Decline Factors: Net financing revenue was impacted by two fewer days in the period, lower average commercial auto balances, and soft lease remarketing activity.
Securities Repositioning Loss: GAAP other revenue included a $495 million pre-tax loss related to securities repositioning, which has been excluded from adjusted metrics.
Record Weather-Related Losses: Net weather losses totaled $58 million, with 80% of claims occurring over a three-day span in March, marking the highest first quarter of weather-related losses in the company's history.
Rising Controllable Expenses: Controllable expenses were up approximately 8% quarter over quarter, primarily driven by the highest first quarter of weather-related losses in history.
Credit Card Business Impact: The sale of the credit card business resulted in a GAAP loss per share of $0.82 for the quarter, despite adjusted earnings per share being $0.58.
Credit Quality Concerns: Retail auto net charge-offs were at 212 basis points, indicating ongoing credit quality concerns despite a decline from the previous quarter.
Elevated Delinquency Rates: Delinquencies remain elevated, with thirty-plus day all-in delinquencies increasing by eleven basis points from the prior year.
Insurance Segment Income Decline: The insurance segment's core pre-tax income was down $36 million year over year due to weather losses, overshadowing strong top-line growth in earned premiums.
Net Financing Revenue Decline: Corporate finance net financing revenue was down $16 million year over year, driven by elevated syndication fee revenue in prior periods.
ALLY FAQs
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ALLY Earning Call Sentiment
Ally Financial Inc. (NYSE:ALLY) Q1 2025 Earnings Call Transcript
ALLY.N
-0.81%Positive
Ally Financial's earnings call reflects strong financial performance, with EPS and core pre-tax income exceeding expectations. The sale of the credit card business is strategically beneficial, boosting CET1 and allowing capital redeployment. Despite weather-related losses, credit quality trends are improving, and the company maintains a solid capital position. The Q&A reveals some uncertainty around tariffs and macroeconomic factors, but management's focus on core franchises and shareholder returns is reassuring. Overall, the positives outweigh the risks, suggesting a positive stock price movement.
