Earnings Review and Free Research Report: Ally Financials’ Revenue Grew 5.6%; EPS Surged 46.5%

Research Desk Line-up: Essent Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Ally Financial Inc. (NYSE: ALLY) (“Ally”), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ALLY, following the Company’s release of its financial results on October 25, 2017, for the third quarter fiscal 2017. The digital financial services Company’s adjusted EPS surpassed analysts’ expectations. 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:

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Get more of our free earnings reports coverage from other constituents of the Mortgage Investment industry. Pro-TD has currently selected Essent Group Ltd (NYSE: ESNT) for due-diligence and potential coverage as the Company reported on November 09, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Essent 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 ESNT. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For three months ended September 30, 2017, Ally’s total net revenue increased 5.6% to $1.46 billion from $1.38 billion in Q3 FY16. During Q3 FY17, the Company’s net financing revenue increased 8.5% to $1.08 billion from $996 million in the same period last year. Total net revenue was in-line with analysts’ expectations of $1.46 billion.

For the reported quarter, Ally’s compensation and benefits expenses increased 6.4% to $264 million from $248 million in Q3 FY16. During Q3 FY17, the Company’s total non-interest expenses increased 2.4% to $753 million from $735 million in the same period last year.

During Q3 FY17, the Company’s net interest margin increased 5 basis points to 2.74% from 2.69% in the same period last year. For the reported quarter, net interest margin, excluding Original Issue Discount (OID), increased 5 basis points to 2.78% from 2.73% in Q3 FY16.

During Q3 FY17, Ally’s EBT increased 1% to $395 million from $391 million in the same period last year. For the reported quarter, the Company’s EBT margin decreased 120 basis points to 27% of revenue from 28.2% of revenue in Q3 FY16.

For the reported quarter, Ally’s net income increased 34.9% to $282 million on a y-o-y basis from $209 million in Q3 FY16. During Q3 FY17, the Company’s diluted EPS increased 46.5% to $0.63 on a y-o-y basis from $0.43 in the same period last year. For the reported quarter, Ally’s adjusted net income increased 7.7% to $292 million on a y-o-y basis from $271 million in Q3 FY16. During Q3 FY17, the Company’s adjusted diluted EPS increased 16% to $0.65 on a y-o-y basis from $0.56 in the same period last year. Adjusted diluted EPS surpassed analysts’ expectations of $0.57.

Ally’s Segment Details

Automotive Finance – During Q3 FY17, the Automotive Finance segment’s total net revenue increased 2.4% to $1.03 billion from $1.01 billion in the same period last year. For the reported quarter, the segment’s consumer coverage ratio was 1.6% compared to 1.4% in Q3 FY16. During Q3 FY17, the segment’s commercial coverage ratio was 0.2% at par with 0.2% in the same period last year.

Insurance – During Q3 FY17, the Insurance segment’s total net revenue increased 3.2% to $287 million from $278 million in the same period last year. For the reported quarter, the segment’s EBT increased 23.2% to $69 million from $56 million in Q3 FY16. For the reported quarter, the segment’s loss ratio was 25.7% compared to 28.8% in the third quarter of 2016. For the reported quarter, the segment’s combined ratio was 86% compared to 92.5% in Q3 FY16.

Mortgage Finance – During Q3 FY17, the Mortgage Finance segment’s total net revenue increased 36% to $34 million from $25 million in the same period last year. For the reported quarter, the segment’s EBT decreased 75% to $2 million from $8 million in Q3 FY16.

Corporate Finance – During Q3 FY17, the Corporate Finance segment’s total net revenue increased 29.4% to $44 million from $34 million in the same period last year. For the reported quarter, the segment’s EBT increased 46.7% to $22 million from $15 million in Q3 FY16. For the reported quarter, the segment’s coverage ratio was 1.9% compared to 2.0% in Q3 FY16

Balance Sheet

As on September 30, 2017, Ally’s cash and equivalents increased 3.1% to $4.42 billion from $4.29 billion on December 31, 2016. For the reported quarter, the Company’s long-term debt decreased 20.6% to $45.12 billion from $56.84 billion in Q4 FY16.

During Q3 FY17, the Company’s net total finance receivables and loans increased 3.3% to $117.59 billion from $113.83 billion in the fourth quarter of last year. For the reported quarter, the Company’s total deposits increased 18.9% to $90.12 billion from $75.74 billion in Q4 FY16.

For the reported quarter, Ally’s adjusted tangible book value per share was $28.2 compared to $26.3 in the third quarter of 2016. During Q3 FY17, the Company’s return on tangible common equity (ROCTE) was 10.3% compared to 9.8% in the same period last year.

For the reported quarter, Ally’s adjusted efficiency ratio was 44.9% compared to 45.9% in Q3 FY16. During Q3 FY17, the Company’s net charge off ratio was 0.85% compared to 0.75% in the same period last year.

Stock Performance

At the closing bell, on Tuesday, November 14, 2017, Ally Financial’s stock slightly climbed 0.74%, ending the trading session at $25.84. A total volume of 2.76 million shares have exchanged hands. The Company’s stock price skyrocketed 14.39% in the last three months, 41.82% in the past six months, and 35.79% in the previous twelve months. Moreover, the stock soared 35.86% since the start of the year. The stock is trading at a PE ratio of 12.02 and has a dividend yield of 1.86%. The stock currently has a market cap of $11.61 billion.

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