What’s next for Ally Financial (ALLY) in third quarter results?

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Ally Financial Inc. ALLY is expected to release its third quarter 2021 results on October 21, ahead of the opening bell. Its profits and revenues in the reporting quarter are expected to have increased year over year.

In the last quarter reported, the company’s profits exceeded Zacks’ consensus estimate. The results benefited from the growth in turnover and allocations to provisions, partially offset by an increase in expenses.

Ally Financial has an impressive history of earnings surprises. Its profits have beaten Zacks’ consensus estimate in each of the past four quarters, the average pace being 63.4%.

Key estimates for the third quarter

Zacks’ consensus estimate for total financing and other interest income is set at $ 2.22 billion, which suggests growth of 4.6% sequentially.

Looking at the components of commission income, the consensus estimate of insurance premiums and earned service income of $ 282 million suggests a 1.4% increase sequentially. Zacks’ consensus estimate for a net gain on mortgages and auto loans of $ 13.50 million indicates a decline of 28.9% from the prior quarter.

The consensus estimate of other net investment gains is set at $ 56 million, indicating a sequential decline of 13.8%. The consensus estimate of other net income of $ 144 million suggests a drop of 42.2%.

As a result, due to an anticipated decline in almost all components of fee income, total non-interest income is expected to have declined during the quarter. Zacks’ consensus estimate for total other income is set at $ 492 million, which suggests a decline of 8.6% sequentially.

On the spending side, Ally Financial has witnessed a persistent increase in spending over the past few quarters. As it launches products and seeks to expand into new areas of activity; overall costs are likely to have been high in the third quarter as well.

Whispers of gains

Our proven model shows that Ally Financial does not have the right combination of the two key ingredients – a positive Win ESP and a Rank 3 of Zacks (Hold) or better – to increase the odds of a win beaten this time around. .

You can discover the best stocks to buy or sell before they are flagged with our ESP Earnings Filter.

ESP on earnings: Profit PSE for Ally Financial is -3.01%.

Zack Rank: The company currently has a Zacks Rank # 2 (Buy).

Zacks’ consensus estimate for the company’s third quarter earnings is set at $ 1.92, which has been revised up 1.6% in the past seven days. The figure indicates an increase of 53.6% from the number reported in the quarter of the previous year.

The consensus sales estimate is set at $ 2.03 billion, which suggests a 20.3% year-over-year increase.

Ally Financial Inc. Pricing and BPA Surprise

Ally Financial Inc. price-eps-surprise | Ally Financial Quote Inc.

Actions worth a look

Here are a few financial stocks that you might want to consider, because according to our model, they have the right mix of items to show a profit beat in their next posts.

Fifth Third Bancorp FITB is expected to release its quarterly results on October 19. The company, which currently holds a Zacks No.2 rank, has an ESP on earnings of + 0.46%.

Bank United, Inc. BKU is expected to release its quarterly results on October 21. The company currently has an ESP on earnings of +1.90% and a Zacks ranking of 3. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Capital One Financial Corporation COF is expected to release its quarterly results on October 26. The company, which currently holds a Zacks rank of 2, has an ESP on earnings of + 5.18%.

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Fifth Third Bancorp (FITB): Free Stock Analysis Report

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Ally Financial Inc. (ALLY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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