Ally Financial Stock Surges as Company Beats Profit Estimates, Sells Credit Card Business

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]