Unlocking Q4 Potential of Ally Financial (ALLY): Exploring Wall Street Estimates for Key Metrics

Core Viewpoint - Analysts expect Ally Financial (ALLY) to report quarterly earnings of $0.59 per share, reflecting a year-over-year increase of 31.1$2.06 billion, a slight decline of 0.4% from the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 1.2%, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly correlated with short-term stock price performance [3]. Key Financial Metrics - Analysts forecast 'Gain on mortgage and automotive loans, net' to be $5.47 million, an increase of 82.3$589.53 million, reflecting a 2.7% increase from the prior year [5]. - 'Insurance premiums and service revenue earned' is projected at $363.73 million, an 8.6$3.59 billion, indicating a 1% decline from the previous year [6]. - 'Other (loss) / gain on investments, net' is expected to be $52.65 million, showing a significant decrease of 38.1$163.19 million, an increase of 8.1% from the prior year [7]. - The consensus estimate for 'Net interest margin (as reported)' remains at 3.2%, unchanged from the previous year [7]. - 'Efficiency Ratio' is forecasted to improve to 58.3%, down from 68.5% in the same quarter last year [7]. Asset and Capital Ratios - 'Total interest-earning assets (Average Balances)' are projected at $184.61 billion, down from$186.96 billion reported in the same quarter last year [8]. - 'Non-performing loans (NPLs)' are estimated at $1.23 billion, a decrease from$1.39 billion in the previous year [8]. - The 'Total Capital Ratio' is expected to reach 12.7%, up from 12.4% reported last year [9]. - The 'Tier 1 Capital Ratio' is projected at 11.0%, compared to 10.8% in the same quarter last year [9]. Stock Performance - Ally Financial shares have returned +7.3% over the past month, outperforming the Zacks S&P 500 composite, which has seen a -3.3% change [10].