Ally Financial Inc. (ALLY) announced a definitive agreement to sell Ally Lending (its point-of-sale or POS financing business), including $2.2 billion of loan receivables, to Synchrony (SYF) . This move reflects Ally Financial's commitment to optimizing its capital allocation and prioritizing resources toward high-growth areas.The portfolio being acquired by SYF is a strategic fit, reinforcing its position in the industry by offering both revolving credit and installment loans at the point-of-sale in the ho ...

Synchrony and Ally Financial have reached a definitive agreement for Synchrony to acquire Ally’s point-of-sale financing business. This acquisition includes $2.2 billion of loan receivables and relationships with 2,500 merchant locations and 450,000 active borrowers, the companies said in a Friday (Jan. 19) press release. It will allow Synchrony to enhance its presence in the home improvement and health and wellness financing sectors, according to the release. Synchrony plans to offer both revolving credit ...

Legendary stock market investor Warren Buffett is more widely known for the stocks he buys that go up, but they can't all be zingers. Shares of consumer-focused bank Ally Financial (ALLY 10.71%) have fallen since Buffett added the stock to Berkshire Hathaway's equity portfolio in early 2022, and it's down about 42% from the peak it reached in 2021.Berkshire Hathaway sold 14 stocks during the third quarter of 2023, seven of which were closed out completely. One that didn't land on the chopping block, though, ...

Financial Performance - Ally Financial reported strong fourth quarter results with earnings per share (EPS) of $0.45 and total net revenue of $2.1 billion, both exceeding analysts' estimates [1] - Net financing revenue in the auto finance business rose by $5 million to $1.3 billion, driven by higher interest rates [2] - Pre-tax income at the insurance unit increased by $28 million to $129 million, primarily due to elevated earned premiums [2] Strategic Transaction - Ally Financial announced a deal with Synchrony Financial to sell its point-of-sale financing arm, which includes $2.2 billion in loan receivables [1][2] - The portfolio includes relationships with nearly 2,500 merchant locations and supports more than 450,000 active borrowers in home improvement services and healthcare [2] - The transaction is expected to close in the current quarter, with financial considerations for the purchase not disclosed [2] Market Reaction - Ally Financial shares surged 10.4% to $35.46, reaching their highest level since August 2022 [3] - Synchrony Financial stock also rose by 3.1% to $36.89 [3]

Earnings and Financial Performance - Ally Financial beat Wall Street earnings estimates with $0.45 per share in Q4 2023, surpassing expectations of $0.44 per share [2] - Revenue for Q4 2023 was $2 billion, slightly above the expected $1.99 billion [2] - The company's shares rose nearly 10% following the earnings announcement [1] Divestiture and Capital Reserves - Ally announced the sale of its point-of-sale financing business to Synchrony Financial, including $2.2 billion of loan receivables [2] - The divestiture is expected to boost Ally's common equity Tier 1 ratio by about 15 basis points and modestly increase tangible book value and per-share earnings in 2024 [3] - The business being sold includes relationships with nearly 2,500 merchant locations and supports over 450,000 active borrowers, primarily in home improvement and healthcare sectors [2] Market and Industry Challenges - 2023 was a challenging year for financial services companies, particularly auto lenders like Ally, due to rising rates and post-pandemic normalization in used car prices [2] - Some auto lenders have pulled back, easing pricing pressures, which appears to be working in Ally's favor [4] Leadership and Strategic Focus - CEO Jeffrey Brown emphasized that the divestiture allows Ally to remain disciplined in capital allocation to optimize risk-adjusted returns [3] - Brown is set to depart for Hendrick Automotive Group, with Doug Timmerman appointed as interim CEO while a permanent replacement is sought [4] Outlook and Investor Sentiment - Despite a dynamic operating environment and CEO transition, Ally is managing challenges well, with a positive long-term outlook for investors [4]

Ally Financial Inc. (NYSE:ALLY) Q4 2023 Earnings Conference Call January 19, 2024 9:00 AM ET Company Participants Sean Leary - Head of Investor Relations Jeff Brown - Chief Executive Officer Doug Timmerman - Interim Chief Executive Officer Russ Hutchinson - Chief Financial Officer Conference Call Participants Ryan Nash - Goldman Sachs Sanjay Sakhrani - KBW Jeff Adelson - Morgan Stanley Rick Shane - JPMorgan John Hecht - Jefferies Operator Good day, and thank you for standing by. Welcome to Ally Financial Fo ...

Ally Financial Inc.’s stock was up nearly 10% during the trading session on Friday — its best one-day rise in nearly a year — after the bank’s earnings beat Wall Street estimates and the bank agreed to sell its point-of-sale financing business to Synchrony Financial. Ally Financial ALLY, +9.63% said its fourth-quarter net income fell to $49 million, or 16 cents a share, from $251 million, or 83 cents a share, in the year-ago quarter. Fourth-quarter adjusted profit dropped to 45 cents a share from $1.08 a ...

For the quarter ended December 2023, Ally Financial (ALLY) reported revenue of $2.07 billion, down 6.1% over the same period last year. EPS came in at $0.45, compared to $1.08 in the year-ago quarter.The reported revenue represents a surprise of +3.77% over the Zacks Consensus Estimate of $1.99 billion. With the consensus EPS estimate being $0.44, the EPS surprise was +2.27%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...

4Q 2023 Preliminary Results Ally Financial Inc. 4Q 2023 Earnings Review January 19, 2024 ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Ally Financial (ALLY) , which belongs to the Zacks Financial - Consumer Loans industry, could be a great candidate to consider.This auto finance company and bank has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 2.94%.For the most recent quarter, ...