Ally Financial (ALLY) To Report Earnings Tomorrow: Here Is What To Expect

Digital banking company Ally Financial (NYSE:ALLY) will be reporting results this Wednesday before the bell. Here’s what investors should know.

Ally Financial beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $2.16 billion, up 3.3% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

Is Ally Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Ally Financial’s revenue to grow 2.8% year on year to $2.15 billion, in line with the 3.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.02 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ally Financial has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.9% on average.

With Ally Financial being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer finance stocks. However, there has been positive investor sentiment in the segment, with share prices up 2.4% on average over the last month. Ally Financial is down 5.3% during the same time and is heading into earnings with an average analyst price target of $52.94 (compared to the current share price of $43.95).

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