Wall Street analysts forecast that Ally Financial (ALLY) will report quarterly earnings of $0.46 per share in its upcoming release, pointing to a year-over-year increase of 2.2%. It is anticipated that revenues will amount to $1.95 billion, exhibiting a decline of 1.9% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 1.3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation 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 a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
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.
The consensus estimate for 'Total other revenue' stands at $492.76 million. The estimate indicates a change of -7% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Insurance premiums and service revenue earned' of $361.57 million. The estimate indicates a change of +4.8% from the prior-year quarter.
Analysts expect 'Gain on mortgage and automotive loans, net' to come in at $6.74 million. The estimate indicates a year-over-year change of +12.3%.
The combined assessment of analysts suggests that 'Total financing revenue and other interest income' will likely reach $3.50 billion. The estimate indicates a change of -2.3% from the prior-year quarter.
Based on the collective assessment of analysts, 'Other income, net of losses' should arrive at $161.25 million. The estimate suggests a change of +7.5% year over year.
Analysts predict that the 'Other (loss) / gain on investments, net' will reach $2.61 million. The estimate indicates a year-over-year change of -91%.
The average prediction of analysts places 'Net interest margin (as reported)' at 3.3%. The estimate compares to the year-ago value of 3.1%.
Analysts forecast 'Efficiency Ratio' to reach 63.4%. Compared to the current estimate, the company reported 65.9% in the same quarter of the previous year.
According to the collective judgment of analysts, 'Total interest-earning assets (Average Balances)' should come in at $183.26 billion. The estimate compares to the year-ago value of $186.93 billion.
Analysts' assessment points toward 'Non-performing loans (NPLs)' reaching $1.27 billion. The estimate compares to the year-ago value of $1.25 billion.
It is projected by analysts that the 'Total Capital Ratio' will reach 12.9%. The estimate compares to the year-ago value of 12.5%.
The consensus among analysts is that 'Tier 1 Capital Ratio' will reach 11.1%. The estimate is in contrast to the year-ago figure of 10.8%.
View all Key Company Metrics for Ally Financial here>>>
Shares of Ally Financial have experienced a change of -6.7% in the past month compared to the -3.6% move of the Zacks S&P 500 composite. 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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