Ally Financial (ALLY) Beats Q4 Earnings & Revenue Estimates

Have you been eager to see how Ally Financial Inc. ALLY performed in Q4 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 70 cents per share, surpassing the Zacks Consensus Estimate of 59 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 bullish stance prior to the earnings release. The Zacks Consensus Estimate increased 1.7% over the last 30 days.

Before posting the earnings beat in Q4, the company delivered positive surprises in three of the trailing four quarters, with an average beat of 9.1%.

Higher-than-Expected Revenues

Ally Financial posted total net revenues of $1.47 billion, which was above the Zacks Consensus Estimate of $1.44. Also, it was above the prior-year quarter figure of $1.37 billion.

Key Statistics

• Recorded $119 million or 27 cents per share charge related tax act
• Auto originations of $9.1 billion in the quarter
• Retail deposit grew 17% year over year to $77.9 billion as of Dec 31, 2017
• Net financing revenue of $1.09 billion, up 12% 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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