3 Expectations For Ally Financial's Q3 Results

Barclays weighed in on Ally Financial Inc ALLY ahead of its Q3 earnings release scheduled for October 26.

The company is maintaining its Q3 EPS estimate of $0.59 on Ally, just a penny shy of consensus estimates. Ally has expected a 15 percent EPS growth this year, aided by an 8 percent share repurchase program during the quarter.

Barclays is not expecting any gains or charges for Ally in Q3. Expected Drivers include continued balance sheet growth through steady loan originations, slightly lower net interest margins, higher net financing revenue, and a higher loan loss provision.

Analysts at Barclays outlined a few keys to watch for the bank:

• Capital
• New Products
• Subprime (11 percent of originations)
• Auto originations expected to hit $36 billion in 2016
• Long-term targets (15 percent EPS growth)

Barclays has an Overweight rating and $23 price target on Ally.

The stock traded down 1 percent Tuesday.