Stay Ahead of the Game With Ally Financial (ALLY) Q4 Earnings: Wall Street's Insights on Key Metrics

Core Viewpoint - Ally Financial (ALLY) is expected to report quarterly earnings of $1.01 per share, reflecting a 29.5% increase year-over-year, with revenues projected at $2.13 billion, a 5% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 0.4% in the last 30 days, indicating analysts' reassessment of their initial estimates [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Key Financial Metrics - Analysts estimate 'Insurance premiums and service revenue earned' to be $364.22 million, a decrease of 1% year-over-year [5]. - 'Net financing revenue' is projected to reach $1.60 billion, indicating a year-over-year increase of 5.8% [5]. - 'Total other revenue' is expected to be $529.70 million, reflecting a 2.5% increase from the prior year [5]. Revenue and Income Projections - The estimated 'Total financing revenue and other interest income' is $3.42 billion, a decrease of 3.1% from the previous year [6]. - 'Other income, net of losses' is projected at $149.94 million, suggesting a decline of 10.2% year-over-year [6]. - The expected 'Net interest margin (as reported)' is 3.5%, up from 3.3% in the same quarter last year [6]. Efficiency and Asset Metrics - The consensus estimate for the 'Efficiency Ratio' is 55.9%, down from 67.1% in the same quarter last year [7]. - 'Total interest-earning assets (Average Balances)' are expected to reach $181.96 billion, slightly lower than the $182.17 billion reported in the same quarter last year [7]. Loan and Capital Ratios - Analysts forecast 'Non-performing loans (NPLs)' to be $1.22 billion, down from $1.49 billion reported in the same quarter last year [8]. - The projected 'Book value per share' is $41.78, an increase from $37.92 in the same quarter last year [8]. - The 'Total Capital Ratio' is expected to be 13.3%, slightly up from 13.2% in the same quarter last year [9]. - The 'Tier 1 Capital Ratio' is projected at 11.0%, down from 11.3% a year ago [9]. Stock Performance - Shares of Ally Financial have returned -1.7% over the past month, contrasting with the Zacks S&P 500 composite's +1.6% change, and the company holds a Zacks Rank 3 (Hold), indicating expected performance in line with the overall market [9].