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Market Overview

Earnings Outlook for Ally Financial Inc. Common Stock

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On Friday, January 22, Ally Financial Inc. Common Stock (NYSE:ALLY) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts expect Ally Financial Inc. Common Stock's EPS to be near $1.05 on sales of $1.67 billion. Ally Financial Inc. Common Stock earnings in the same period a year ago was $0.95 per share. Quarterly sales came in at $1.64 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Friday, EPS would be up 10.53%. Sales would be up 1.64% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.68 0.18 0.71 0.93
EPS Actual 1.25 0.61 -0.44 0.95
Revenue Estimate 1.55 B 1.50 B 1.60 B 1.61 B
Revenue Actual 1.68 B 1.53 B 1.61 B 1.64 B

Stock Performance

Shares of Ally Financial Inc. Common Stock were trading at $41.35 as of January 20. Over the last 52-week period, shares are up 27.41%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ally Financial Inc. Common Stock is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings News Financing

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