Analysts predict Ally Financial’s Q4 earnings and revenue metrics, showing mixed trends and potential growth in key areas.
Detroit: Wall Street analysts are buzzing about Ally Financial (ALLY) and its upcoming earnings report. They expect the company to post earnings of $0.59 per share, which is a nice jump of 31.1% from last year. However, revenues are projected to dip slightly to $2.06 billion, down 0.4% from the same quarter last year.
In the last month, analysts have adjusted their earnings estimates down by 1.2%. This shows they’ve been rethinking their earlier predictions. It’s always good to keep an eye on these changes before earnings are released, as they can hint at how investors might react.
While many folks look at the overall earnings and revenue numbers, digging into specific metrics can give a clearer picture of how the company is doing. So, let’s break down what analysts are forecasting for Ally Financial.
For instance, they expect a gain on mortgage and automotive loans to hit $5.47 million, which is a whopping 82.3% increase from last year. That’s pretty impressive!
They also predict that total other revenue will come in at $589.53 million, marking a 2.7% rise from the previous year. And when it comes to insurance premiums and service revenue, analysts are looking at around $363.73 million, an 8.6% increase.
On the flip side, total financing revenue and other interest income is expected to drop slightly to $3.59 billion, a 1% decrease year over year. Meanwhile, other gains on investments are projected to fall significantly to $52.65 million, down 38.1% from last year.
Analysts are also forecasting other income to be about $163.19 million, which is an 8.1% increase. The net interest margin is expected to stay steady at 3.2%, the same as last year.
Looking at efficiency, they predict it will improve to 58.3%, up from 68.5% in the same quarter last year. Total interest-earning assets are expected to be around $184.61 billion, down from $186.96 billion last year.
As for non-performing loans, analysts estimate they’ll be about $1.23 billion, down from $1.39 billion last year. They also expect the total capital ratio to rise to 12.7%, compared to 12.4% last year, and the Tier 1 capital ratio to reach 11.0%, up from 10.8%.
In the past month, Ally Financial shares have gained 7.3%, while the S&P 500 has dipped by 3.3%. With a Zacks Rank of #3 (Hold), it looks like ALLY will follow the market’s lead in the near future.
