Compared to Estimates, Ally Financial (ALLY) Q3 Earnings: A Look at Key Metrics

Core Insights - Ally Financial reported $2.1 billion in revenue for Q3 2024, a year-over-year increase of 6.9% and an EPS of$ 0.95 compared to $0.83 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] - The company demonstrated a revenue surprise of +2.01% and an EPS surprise of +66.67% compared to analyst expectations [1] Financial Performance Metrics - Net interest margin was reported at 3.2%, slightly below the estimated 3.3% [2] - Efficiency Ratio stood at 58.3%, better than the average estimate of 58.6% [2] - Book value per share was$ 40.70, exceeding the estimate of $38.93 [2] - Net charge-offs to average finance receivables and loans outstanding were 1.5%, better than the estimated 1.6% [2] - Gain on mortgage and automotive loans was$ 6 million, surpassing the estimate of $5.71 million, reflecting a +50% change year-over-year [2] - Net financing revenue was$ 1.49 billion, slightly below the average estimate of $1.51 billion, representing a -2.9% year-over-year change [2] - Total other revenue reached$ 615 million, exceeding the estimate of $552.07 million, with a +41.4% year-over-year change [2] - Insurance premiums and service revenue earned were$ 359 million, above the estimate of $344.37 million, showing a +12.2% change year-over-year [2] - Total financing revenue and other interest income was$ 3.57 billion, below the average estimate of $3.62 billion, indicating a -0.6% year-over-year change [2] - Other (loss) / gain on investments, net was$ 74 million, significantly higher than the estimate of $37.55 million, with a year-over-year change of -280.5% [2] - Other income, net of losses was$ 176 million, exceeding the estimate of $158.44 million, reflecting a +15.8% year-over-year change [2] - Interest on loans held-for-sale was$ 5 million, below the estimate of $7.19 million, representing a -28.6% change year-over-year [2] Stock Performance - Shares of Ally Financial returned +2.5% over the past month, underperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]