Shares of Ally Financial Inc. (NYSE: ALLY ) have been a moderate performer over the past year, gaining just under 10% in what has been a strong bull market. More recently, shares have begun clawing back losses suffered backOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disc ...

Ally Financial (ALLY 1.11%) has underperformed the market over the past year, with fears of rising defaults and demand concerns weighing on the bank's stock. However, the company just announced some big moves, and 2025 could be a major inflection point for this business.Not only is Ally refocusing its efforts on its core businesses, but the company could be a big beneficiary of Federal Reserve interest rate cuts. With the bank stock trading at a cheaper valuation than most of its peers, now could be a good ...

Ally Financial’s (ALLY) fourth-quarter 2024 adjusted earnings of 78 cents per share handily surpassed the Zacks Consensus Estimate of 59 cents. Also, the bottom line reflected a jump of 95% from the year-ago quarter.See the Zacks Earnings Calendar to stay ahead of market-making news.As a part of its efforts to create a simplified and streamlined organizational structure, Ally Financial announced some business actions. These include an agreement to sell its credit card business, cease new mortgage loan origi ...

Earnings and Revenue Performance - Ally Financial posted adjusted earnings per share of 78 cents for the fourth quarter, exceeding analysts' expectations [1] - Revenue for the quarter was $2.03 billion, down 2.4% year-over-year but still surpassing estimates [1] Strategic Actions and Cost Reduction - The company reduced its workforce and changed to the deferral method of accounting for electric vehicle leases [2] - Corporate expense allocations and reporting segments were adjusted to improve financial performance [2] Sale of Credit Card Business - Ally Financial sold its credit card business to CardWorks and its subsidiary Merrick Bank for an undisclosed amount [2] - The credit card business had a portfolio of $2.3 billion in credit card receivables and 1.3 million active cardholders as of Dec 31 [2] - The sale is part of a broader strategy to simplify the company's structure and focus on core businesses [3] Market Reaction - Ally Financial shares surged more than 4% to $39.84 in intraday trading following the earnings report [3] - The stock has gained approximately 11% year-to-date [3]

Financial Data and Key Metrics Changes - The company has changed its accounting methodology for electric vehicle tax credits, with figures for 2023 and 2024 presented under the new deferral method of accounting [4][5] - Certain metrics are shown under both the new deferral method and the prior flow-through methodology for comparison [5] Business Line Data and Key Metrics Changes - No specific data or metrics related to individual business lines are provided in the content Market Data and Key Metrics Changes - No specific data or metrics related to individual markets are provided in the content Company Strategy and Development Direction - No specific information on company strategy or development direction is provided in the content Management Commentary on Operating Environment and Future Outlook - No specific commentary from management on the operating environment or future outlook is provided in the content Other Important Information - The company has provided forward-looking statements and risk factor language on Slide 2 of the presentation [4] - GAAP and non-GAAP measures related to operating performance and capital results are detailed on Slides 3 and 4 [4] Q&A Session Summary - No Q&A session details are provided in the content

Economic Overview - Pre-market futures indicate a positive outlook for major indexes, with the Dow up 145 points (+0.33%), S&P 500 up 34 points (+0.56%), and Nasdaq up 219 points (+1.01%) due to optimism surrounding a pro-growth Trump administration [1] - This week is light on economic data, with the U.S. Leading Economic Indicators (LEI) report expected after today's opening bell, following last week's significant CPI, PPI, Retail Sales, and Housing Starts data [2] Q4 Earnings Results - Johnson & Johnson (JNJ) reported Q4 earnings of $2.04 per share, slightly beating estimates by 4 cents, with revenues of $22.52 billion, a modest increase of +0.06% over estimates; however, revenue guidance was lower than expected, impacting stock performance [4] - Procter & Gamble (PG) reported fiscal Q2 earnings of $1.88 per share, beating expectations of $1.86, with revenues of $21.88 billion, outperforming the Zacks consensus by +1.33%; demand for household goods is reportedly increasing [5] - Ally Financial (ALLY) shares rose +10% pre-market after reporting Q4 earnings of 78 cents per share, exceeding projections of 59 cents, with revenues of $2.1 billion, surpassing the Zacks consensus of $2.07 billion; the bank reported a +95% customer retention rate [6] - Amphenol (APH) posted Q4 earnings of 55 cents per share, beating estimates by 5 cents, with revenues of $4.32 billion, exceeding the Zacks consensus of $4.03 billion, and showing a +29.8% year-over-year increase; shares doubled their +4.9% gains year to date following the earnings report [7]

Core Insights - Ally Financial reported revenue of $2.03 billion for the quarter ended December 2024, a decrease of 2% year-over-year, and an EPS of $0.78, up from $0.45 in the same quarter last year, indicating a significant EPS surprise of +36.84% compared to the consensus estimate of $0.57 [1] Financial Performance Metrics - Net interest margin was reported at 3.3%, slightly above the average estimate of 3.2% [4] - Efficiency ratio was 67.1%, significantly higher than the estimated 58.3% [4] - Book value per share was $37.92, lower than the estimated $39.18 [4] - Net charge-offs to average finance receivables and loans outstanding were 1.6%, better than the estimated 1.9% [4] - Total other revenue was $517 million, down 9.9% year-over-year, and below the average estimate of $590.90 million [4] - Gain on mortgage and automotive loans was $6 million, a 100% increase year-over-year, exceeding the estimate of $5.67 million [4] - Insurance premiums and service revenue earned were $368 million, slightly above the estimate of $364.09 million, reflecting a 9.9% year-over-year increase [4] - Net financing revenue was $1.51 billion, surpassing the estimate of $1.48 billion [4] - Other (loss) / gain on investments was -$24 million, significantly worse than the estimated gain of $52.65 million, representing a year-over-year change of -128.2% [4] - Other income, net of losses, was $167 million, slightly above the estimate of $163.77 million, with a year-over-year increase of 10.6% [4] - Total financing revenue and other interest income was $3.53 billion, below the estimate of $3.59 billion, reflecting a year-over-year decrease of 2.6% [4] - Interest and fees on finance receivables and loans were $2.83 billion, lower than the estimate of $2.88 billion, with a year-over-year change of -1.9% [4] Stock Performance - Shares of Ally Financial have returned +6.8% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

January 22, 2025 Contact Ally Investor Relations at (866) 710-4623 or investor.relations@ally.com 4Q 2024 Preliminary Results Forward-Looking Statements and Additional Information This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. This information is preliminary and based on company and third-party data available at ...

Group 1: American Express - American Express is a long-term performer and a significant holding for Warren Buffett since 1991, benefiting from a vertically integrated payments network and travel perks [3][4] - The company added 3 million new credit cards in the last quarter, which is expected to drive spending and profits [4] - Management projects annual revenue growth of 10% and earnings per share (EPS) growth at mid-teens levels, with a current price-to-earnings (P/E) ratio of 23 [5] Group 2: Occidental Petroleum - Occidental Petroleum is one of the largest oil and natural gas producers in the U.S., producing a record 1.4 million barrels of oil equivalent per day last quarter [7] - The company generated $1.5 billion in free cash flow last quarter and $4.5 billion over the past 12 months, with a market cap of $49 billion [8] - The stock is considered a long-term energy hedge unless oil prices crash, making it an attractive investment for 2025 and beyond [8] Group 3: Ally Financial - Ally Financial is a major digital bank with over $100 billion in deposits, benefiting from high interest rates on deposits compared to traditional banks [9][10] - The company is facing challenges due to rising loss rates in the automotive sector and the impact of rising interest rates, but is expected to stabilize as the Federal Reserve lowers rates [11] - Ally Financial has a P/E of around 15, and as earnings recover, the P/E is expected to decrease, leading to potential stock price increases and higher dividend payouts [12]

Financial Performance - Ally Financial reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and up from $0.45 per share a year ago, representing an earnings surprise of 36.84% [1] - The company posted revenues of $2.03 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.90%, and down from $2.07 billion year-over-year [2] - Over the last four quarters, Ally Financial has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Ally Financial shares have increased approximately 6% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $2.11 billion, and for the current fiscal year, it is $3.91 on revenues of $8.92 billion [7] - The estimate revisions trend for Ally Financial is mixed, and changes in earnings expectations may occur following the recent earnings report [6] Industry Context - The Financial - Consumer Loans industry, to which Ally Financial belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Ally Financial's stock may be influenced by the overall outlook for the industry [8]