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Ally Financial (ALLY) Misses on Q1 Earnings; Revenues Up

Have you been eager to see how Ally Financial Inc. ALLY performed in Q1 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 Miss

Ally Financial came out with adjusted earnings of 52 cents per share, missing the Zacks Consensus Estimate of 55 cents.

Higher expenses were largely responsible for earnings miss.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Ally Financial depicted a neutral stance to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.

However, Ally Financial has a decent earnings surprise history. Before posting the earnings miss in Q1, the company delivered positive surprises in all four trailing quarters, with an average beat of 7.58%.

Revenues Surpass Expectations

Ally Financial posted total net revenues of $1.33 billion, which surpassed the Zacks Consensus Estimate of $1.32 billion.

Key Statistics to Note:

  • Consumer auto originations of $9.0 billion
  • Retail deposit growth of 17% to $59 billion
  • Net financing revenue of $964 million, up 12%     

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) 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 unfavorable, it all depends on what sense the just-released report makes to the analysts.

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