- Ally Financial‘s total deposits reached $147.9 billion, falling short of the estimated $150.82 billion.
- The core return on tangible common equity exceeded expectations at +13.6%, compared to the estimated +10.2%.
- Net interest margin was 3.45%, higher than the anticipated 3.34%.
- Adjusted earnings per share were 99 cents, surpassing the expected 81 cents.
- Net revenue for the quarter was $2.1 billion.
- The provision for loan losses was $384.0 million, below the forecasted $431.6 million.
- Net charge-offs amounted to $366.0 million, under the estimated $418.5 million.
- Consumer auto originations hit $11.00 billion, exceeding the forecast of $10.3 billion.
- For the year, Ally Financial maintains its net interest margin forecast at 3.4% to 3.5%, aligning with the estimate of 3.42%.
- The company projects retail auto net charge-offs between 2% and 2.15%, previously projected at 2% to 2.25%.
- Analyst recommendations include 13 buys, 9 holds, and 1 sell rating.
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A look at Ally Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Ally Financial Inc., an automotive financial services company with a direct banking arm, appears to have a positive long-term outlook based on the Smartkarma Smart Scores. The company scores high in Value and Dividend factors, indicating strong financial health and potential for consistent dividend payouts. Additionally, Ally Financial shows promise in maintaining Resilience and Momentum, further bolstering its overall outlook.
With a strong Value and Dividend score, Ally Financial demonstrates stability and attractiveness for investors seeking potential returns. While the Growth score is moderate, the company’s Resilience and Momentum scores suggest a steady performance and positive market sentiment. Overall, Ally Financial‘s diversified business model and financial strength position it well for long-term growth and stability in the automotive financial services sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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