Analysts on Wall Street project that Ally Financial (ALLY) will announce quarterly earnings of $0.78 per share in its forthcoming report, representing a decline of 19.6% year over year. Revenues are projected to reach $2.03 billion, increasing 1.5% from the same quarter last year.
Over the last 30 days, there has been a downward revision of 1.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Ally Financial metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts' assessment points toward 'Net financing revenue' reaching $1.51 billion. The estimate indicates a change of +1.2% from the prior-year quarter.
The consensus among analysts is that 'Total other revenue' will reach $519.32 million. The estimate suggests a change of +2.8% year over year.
It is projected by analysts that the 'Insurance premiums and service revenue earned' will reach $354.05 million. The estimate indicates a year-over-year change of +3.8%.
According to the collective judgment of analysts, 'Gain on mortgage and automotive loans, net' should come in at $4.78 million. The estimate indicates a year-over-year change of -20.3%.
Based on the collective assessment of analysts, 'Total financing revenue and other interest income' should arrive at $3.44 billion. The estimate indicates a year-over-year change of -2.7%.
Analysts forecast 'Net interest margin (as reported)' to reach 3.3%. The estimate is in contrast to the year-ago figure of 3.3%.
The average prediction of analysts places 'Efficiency Ratio' at 59.8%. Compared to the present estimate, the company reported 64.3% in the same quarter last year.
The combined assessment of analysts suggests that 'Book value per share' will likely reach $39.21 . The estimate is in contrast to the year-ago figure of $37.84 .
Analysts expect 'Total interest-earning assets (Average Balances)' to come in at $183.47 billion. Compared to the present estimate, the company reported $183.71 billion in the same quarter last year.
The collective assessment of analysts points to an estimated 'Non-performing loans (NPLs)' of $1.24 billion. Compared to the current estimate, the company reported $1.22 billion in the same quarter of the previous year.
The consensus estimate for 'Total Capital Ratio' stands at 13.0%. The estimate compares to the year-ago value of 12.7%.
Analysts predict that the 'Tier 1 Capital Ratio' will reach 11.1%. Compared to the present estimate, the company reported 11.0% in the same quarter last year.
View all Key Company Metrics for Ally Financial here>>>
Shares of Ally Financial have demonstrated returns of +11% over the past month compared to the Zacks S&P 500 composite's +5% change. With a Zacks Rank #3 (Hold), ALLY is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Ally Financial Inc. (ALLY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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