Ally Financial Q1 adjusted EPS beats estimates on cost reductions

Ally Financial

17/04/2026 12:18

Overview

U.S. digital bank and auto lender's Q1 adjusted EPS rose 90% yr/yr, beating analyst expectations

Q1 revenue increased 36% yr/yr to $2.1 bln

Company repurchased $147 mln in shares during the quarter

Outlook

Company did not provide specific financial guidance for the current or future periods in its press release

Result Drivers

AUTO FINANCE ORIGINATIONS - Growth in consumer auto originations and higher portfolio yields contributed to increased net financing revenue, despite higher provision and noninterest expenses

INSURANCE SEGMENT - Improved insurance results driven by lower weather losses and higher investment income

COST REDUCTIONS - Lower noninterest expense mainly due to the sale of the credit card business and reduced weather-related insurance losses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$2.10 bln
Q1 Adjusted EPS
Beat
$1.11
$0.93 (14 Analysts)
Q1 CET1 Capital Ratio
10.10%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the consumer lending peer group is "buy"

Wall Street's median 12-month price target for Ally Financial Inc is $52.00, about 23.9% above its April 16 closing price of $41.96

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)