CHARLOTTE, N.C., April 17, 2025 /PRNewswire/ -- Ally Financial Inc. (NYSE: ALLY) today reported its first quarter 2025 results. View full press release in PDF.The news release, presentation and financial supplement can be accessed in the following ways: Ally Financial Press Room at https://media.ally.com Ally Financial Investor Relations website at https://ally.com/about/investor/Ally will host a conference call at 9 a.m. ET to review the company's performance. The call will include a review of the results, ...

Wall Street analysts forecast that Ally Financial (ALLY) will report quarterly earnings of $0.46 per share in its upcoming release, pointing to a year-over-year increase of 2.2%. It is anticipated that revenues will amount to $1.95 billion, exhibiting a decline of 1.9% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 1.3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial ...

Core Insights - Ally Financial Inc. has announced a multi-year partnership with the WNBA, becoming the official banking partner and a WNBA Changemaker, aimed at enhancing engagement with fans and promoting women's sports [1][2][9] Partnership Details - Ally will serve as the presenting partner of the WNBA's first-ever "Rivals Week," scheduled for August 9-17, 2025, featuring key matchups that highlight team rivalries and player competitions [3][4] - The partnership includes a new endorsement deal with incoming rookie Paige Bueckers, complementing existing relationships with players like Breanna Stewart and Sydney Colson [5][8] Marketing Initiatives - Ally is launching the "That's A 'Savings' Bucket" sweepstakes, offering fans a chance to win a trip to the AT&T WNBA All-Star 2025 in Indianapolis and $5,000 towards savings [6][10] - The partnership will also feature Ally as the presenting partner of WNBA All-Star Voting and a logo patch partner for the All-Star Game jerseys [8] Strategic Goals - Ally's partnership aligns with its 50/50 Pledge, aiming for parity in paid media spending between women's and men's sports by 2026, a year ahead of schedule [9][11] - The WNBA is recognized as a rapidly growing brand, ranked as the fastest-growing brand in 2024 and fourth on Fast Company's list of the World's 50 Most Innovative Companies of 2025 [13]

Wall Street expects a year-over-year increase in earnings on lower revenues when Ally Financial (ALLY) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 17. O ...

Market Overview - The stock market has experienced significant volatility, with the S&P 500 down 18% from its February high and the Nasdaq Composite down 23%, indicating a bear market [1] - Major market indexes fell by over 10% in a two-day period due to high tariff rates announced by President Trump [1] Investment Opportunities - Current market conditions present opportunities to invest in solid companies at discounted prices, with five recommended stocks that have lost over 25% of their value recently [2] Company Analysis Amazon.com - Amazon.com is down nearly 30% from its peak due to potential impacts from tariffs on imported products and concerns over reduced spending on cloud and AI services amid economic turbulence [3] - E-commerce represents just over 15% of U.S. retail sales, and the cloud computing market is projected to quadruple by 2032, indicating significant growth potential for Amazon [4] Alphabet (Google) - Alphabet has fallen 29% from its peak, making it more attractive for investment [5] - The company combines a mature business (Google) with growth potential in Google Cloud, boasting a 29% net margin and nearly $96 billion in cash [6] Ally Financial - Ally Financial is trading 27% below its 52-week high, influenced by increased recession risks leading to weak loan demand and potential higher defaults [7] - The company is the largest indirect auto lender in the U.S. and is focusing on its core auto-lending business, maintaining high credit quality in its loans [8] Shopify - Shopify has seen a 41% decline from its 52-week high, affected by tariffs due to its international platform [9] - Despite the downturn, Shopify reported 26% year-over-year revenue growth in 2024 and over $2 billion in net income, with expectations for continued growth [10] Advanced Micro Devices (AMD) - AMD shares are down 53% from their 52-week high, trading at a valuation of 18 times forward earnings despite strong growth prospects [11][13] - The company is gaining market share in the PC and laptop CPU market and has opportunities in gaming and embedded chips, including applications in autonomous vehicles [12]

Core Points - Ally Financial Inc. is set to release its first quarter financial results on April 17, 2025, at approximately 7:30 a.m. ET [1] - A conference call will be held at 9 a.m. ET to discuss the company's performance, available via webcast or dial-in [2] - Registration for the conference call is required at least 15 minutes prior to the start [3] - A replay of the conference call will be accessible via webcast on Ally's Investor Relations website [4] Company Overview - Ally Financial Inc. operates as a financial services company with the largest all-digital bank in the nation and a leading auto financing business [5] - The company provides a range of services including deposits, securities brokerage, investment advisory, auto financing, and insurance offerings [5] - Ally also has a corporate finance division that offers capital for equity sponsors and middle-market companies [5]

Core Initiatives - Ally Financial has initiated a balance sheet repositioning to support net interest income (NII) and net interest margin (NIM) expansion by selling lower-yielding investment securities with an amortized cost of nearly $2.8 billion for $2.5 billion, resulting in a pre-tax loss of $250 million in the current quarter [1] - The proceeds from the sale have been reinvested into shorter-duration, highly liquid securities at current market rates, which is expected to lower the CET1 ratio by almost 12 basis points while slightly increasing NII and NIM in upcoming quarters [2] Industry Context - Several U.S. banks, including Associated Banc-Corp and KeyCorp, have also engaged in balance sheet restructuring to mitigate the adverse effects of high interest rates on NII and NIM, with ASB selling approximately $1.3 billion of investment securities yielding 1.87% and reinvesting in higher-yielding securities yielding 5.08% [3] Organizational Restructuring - Ally Financial is restructuring its operations to create a streamlined organizational structure, including the sale of its credit card business to CardWorks, which includes $2.3 billion in credit card receivables and 1.3 million active cardholders as of December 31, 2024 [4] - The transaction is expected to close in the second quarter of 2025, adding 40 basis points to the CET1 ratio at closing and $1 to adjusted tangible book value per share, with anticipated one-time transaction-related expenses of $10-$20 million [5] Cost Management - The company has ceased originating new mortgage loans and announced workforce reductions, which are expected to yield annual cost savings of $60 million [6] Growth Strategy - Ally Financial plans to invest resources in growing core businesses and strengthening relationships with dealer customers, anticipating improved demand for consumer loans due to relatively lower interest rates, which is expected to drive net financing revenues in the coming quarters [7] Strategic Outlook - The balance sheet repositioning and organizational restructuring efforts reflect Ally Financial's commitment to long-term growth and profitability, despite the immediate financial impact, positioning the company for future success [8]

Core Viewpoint - Bank stocks are typically seen as stable investments with dividends, but some banks like Ally, Nu Holdings, and SoFi Technologies offer both reliability and growth potential [1] Group 1: Ally - Ally is recognized as a reliable dividend-paying bank stock, endorsed by Warren Buffett, and has a significant role in the American economy as the top prime auto lender [2] - The company has transitioned to an all-digital bank, becoming the largest in the U.S., which enhances its growth potential [3] - Ally boasts $143 billion in consumer retail deposits with a 95% consumer retention rate, and it offers a dividend yield of 3.3% [3][4] - The stock appears undervalued with a P/E ratio of 14 and a price-to-book ratio of 0.9, making it an attractive value pick for investors [4] Group 2: Nu Holdings - Nu is an all-digital bank based in Brazil, also operating in Mexico and Colombia, and is experiencing rapid customer growth [5] - The company reported a 50% year-over-year revenue increase in Q4 2024, with net income rising from $360.9 million to $552.6 million [6] - Average revenue per active customer (ARPAC) increased by 23% year-over-year to $10.70, indicating strong cross-selling performance [6] - Loan originations surged by 84% year-over-year in Q4, and the interest-earning portfolio grew by 57% [7] - Despite recent market confidence issues due to Berkshire Hathaway selling shares and concerns over the Brazilian real, the stock remains flat, presenting a buying opportunity [7] Group 3: SoFi Technologies - SoFi is a young, fast-growing all-digital U.S. bank, reporting significant increases in sales and earnings while attracting new members [8] - The company ended 2024 with 10.1 million members, a 34% increase, and 14.7 million products, a 32% increase [9] - The financial services segment, which includes non-lending services, grew by 84% year-over-year in Q4 2024, while the lending segment revenue increased by 18% [10] - SoFi is well-positioned for a strong 2025 as interest rates decline, with management aiming to become a "top 10" U.S. bank, indicating potential for significant long-term growth [11]

Core Insights - Ally Financial experienced significant benefits during the COVID-19 pandemic, with timely repayments on automotive loans and increased interest in online banking due to low interest rates and reduced spending on travel [1] - In 2022, the company faced challenges as rising interest rates increased costs for retaining depositors and negatively impacted automotive loan repayments, leading to a decline in earnings per share (EPS) and stock performance [2] - The company is now potentially on a recovery path with falling interest rates and a normalization of the automotive market [3] Business Strategy - Ally Financial is refocusing its operations by selling its credit card business and ceasing new home mortgage loans, allowing it to concentrate on automotive loans and insurance for dealer partners [5] - The company originated nearly $40 billion in car loans in 2024, with improved performance metrics in retail automotive loans compared to 2022 and 2023, indicating a positive trend in its lending operations [6] Deposit Growth - Ally has historically seen consistent growth in customer acquisition and deposits, which are crucial for funding lending operations [7] - However, deposit growth has slowed, with retail deposits increasing from $135 billion at the end of 2021 to $143 billion by the end of 2024, attributed to Federal Reserve interest rate hikes and competition from other banks [8] - The company is expected to benefit from the stabilization of interest rates, which may lead to increased customer acquisition and deposit growth in the coming years [9] Earnings Outlook - Currently, Ally's stock has a price-to-earnings (P/E) ratio of 15, with depressed earnings due to recent challenges; EPS was $2.60 over the last 12 months compared to over $7.50 at its peak in 2021 [10] - The company is projected to achieve an EPS of $5 or higher within five years, driven by shedding non-core operations and improving its automotive loan portfolio [11] - At an EPS of $5, the stock would trade at a P/E under 8, indicating potential for price appreciation and attractive returns, especially with a dividend yield of 3% [12]

Group 1 - The credit card industry has experienced significant growth, with companies like Visa and Discover reaching new highs in recent years [1] - Smaller players in the credit card market are also benefiting from this growth trend [1] Group 2 - The article does not provide specific financial data or performance metrics for the companies mentioned [1]