Earnings Review and Free Research Report: Ally Financial’s Q2 Diluted EPS Beat Estimates

Research Desk Line-up: Nationstar Mortgage Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 11, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Ally Financial Inc. (NYSE: ALLY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ALLY, following the Company’s posting of its financial results on July 27, 2017, for the second quarter fiscal 2017 (Q2 FY17). The Detroit, Michigan-based Company’s adjusted diluted EPS grew 7% y-o-y, outperforming market consensus forecasts. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Mortgage Investment industry. Pro-TD has currently selected Nationstar Mortgage Holdings Inc. (NYSE: NSM) for due-diligence and potential coverage as the Company reported on August 03, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Nationstar Mortgage when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ALLY; also brushing on NSM. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=ALLY

http://protraderdaily.com/optin/?symbol=NSM

Earnings Reviewed

For the three months ended June 30, 2017, Ally Financial’s total net revenue increased to $1.46 billion from $1.36 billion in Q2 FY16. Total net revenue numbers for the reported quarter topped market expectations of $1.42 billion. The Company’s net financing revenues for the reported quarter came in at $1.07 billion compared to $984 million in Q2 FY16. Furthermore, total other revenue increased to $388 million during the reported quarter from $374 million in the previous year’s comparable period.

The auto finance Company and bank reported net income available to common equity of $252 million, or $0.55 per diluted share, in Q2 FY17 compared to $345 million, or $0.71 per diluted share, in Q2 FY16. Meanwhile, the Company’s adjusted net income grew to $0.58 per diluted share during Q2 FY17 from $0.54 per share in Q2 FY16. Adjusted net income per diluted share topped analyst’s expectations of $0.53 per diluted share.

Performance Metrics

In Q2 FY17, Ally Financial’s return on equity was 7.5% in Q2 FY17 compared to 10.4% reported in the year ago same quarter. The Company’s core return on average tangible common shareholders’ equity (ROTCE) came in at 9.6% for the reported quarter versus 9.7% in the previous year’s corresponding period. The Company had adjusted tangible book value per share of $27.4 in Q2 FY17 compared to $25.9 in Q2 FY16.

The bank’s adjusted efficiency ratio was 43.7% in Q2 FY17 as well as in Q2 FY16. Moreover, Ally Financial’s net interest margin improved eight basis points to 2.76% for the reported quarter from 2.68% in Q2 FY16.

As on June 30, 2017, the bank’s fully phased-in Common equity Tier-1 capital ratio was 9.37% compared to 9.31% as on June 30, 2016. During Q2 FY17, nonperforming assets fell to $783 million from $819 million in Q2 FY16. During the quarter, allowance for loan and lease losses were $1.23 billion, or 1.0% of finance receivables and loans outstanding, versus $1.09 billion, or 1.0% of finance receivables and loans outstanding, in the last year’s comparable quarter.

Segment Performance

For the reported period, Auto Finance’s net financing revenue and other interest income came in at $932 million compared to $929 million in Q2 FY16. The segment’s other revenues also increased to $107 million in Q2 FY17 from $77 million in Q2 FY16. However, the segment’s pre-tax income fell to $347 million during Q2 FY17 from $426 million in the prior year’s comparable quarter.

Insurance’s total net revenues were down to $259 million in Q2 FY17 from $275 million in Q2 FY16. Meanwhile, the segment reported a pre-tax loss of $21 million during Q2 FY17 compared to pre-tax loss of $18 million in Q2 FY16.

During Q2 FY17, the Mortgage Finance segment reported total net revenues of $33 million compared to $26 million in Q2 FY16. Furthermore, the segment’s pre-tax income was down to $7 million in Q2 FY17 from $9 million in the previous year’s comparable quarter.

Corporate Finance segment’s total net revenues increased to $58 million in Q2 FY17 from $33 million in Q2 FY16. Additionally, the segment’s pre-tax income stood at $35 million in Q2 FY17, up from $14 million in Q2 FY16.

Cash Matters and Balance Sheet

In the six months ended June 30, 2017, net cash provided by operating activities was $2.07 billion compared to $2.44 billion in the prior year’s same period. The Company’s cash and cash equivalents balance stood at $4.38 billion as on June 30, 2017, compared to $5.93 billion at the close of books on December 31, 2016. Furthermore, the Company’s total long-term debt decreased to $49.15 billion as on June 30, 2017, from $54.13 billion as on December 31, 2016.

Dividend and Share Repurchase

In a separate press release on July 19, 2017, Ally Financial’s Board of Directors declared a quarterly cash dividend of $0.12 per share of the Company’s common stock, payable on August 15, 2017, to shareholders of record on August 01, 2017.

Stock Performance

On Thursday, August 10, 2017, the stock closed the trading session at $22.12, slipping 2.81% from its previous closing price of $22.76. A total volume of 3.36 million shares have exchanged hands. Ally Financial’s stock price surged 3.46% in the past one month, 17.47% in the last three months, and 18.61% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 16.30%. The stock is trading at a PE ratio of 10.70 and has a dividend yield of 2.17%. At Thursday’s closing price, the stock’s net capitalization stands at $10.13 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

ReleaseID: 472314