Banking, finance, and taxes
Ally Faces Analyst Upgrade Brigade After Stronger Earnings
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When Ally Financial Inc. (NYSE: ALLY) reported earnings on Friday, the numbers handily beat expectations. They also were better than a year ago, which is something not many financial companies can claim on the heels of the COVID-19-induced recession.
Ally reported earnings of $1.25 per share and revenues of $1.68 billion, which were better than the $0.68 per share and $1.55 billion in revenue estimates. That represented earnings and revenue growth of more than 23%.
While the consensus earnings estimate from Refinitiv had been $1.46 EPS for 2020, that is against $3.72 EPS in 2019. The consensus for 2021 was $3.13 EPS.
Ally’s report and commentary indicate the company still sees the overall market conditions as challenging and volatile, despite it being well positioned for accelerating digital trends and evolving consumer demands in auto lending. Ally also noted that the third quarter had seen the highest metrics since it became a publicly traded company.
Ally Financial stock rose 2.7% to $28.63 a share on Friday’s post-earnings reaction, and it was up by an additional 3.8% at $29.70 after the opening bell on Monday.
More than 10 analysts have raised their price targets on Ally.
Ally Financial stock has traded in a 52-week range of $10.22 to $33.34, and its Refinitiv consensus target price had been $29.69.
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