Ally Financial Q3 Profit Misses Estimates; Adj. Revenue Down 1%

(RTTNews) - Ally Financial Inc. (ALLY) reported net income attributable to shareholders of $272 million in the third quarter, compared to $683 million, a year ago, as higher net financing revenue was more than offset by higher provision for credit losses, higher noninterest expenses and lower other revenue. GAAP EPS was $0.88 compared to $1.89. Adjusted EPS was $1.12 compared to $2.16. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.70, for the quarter. Analysts' estimates typically exclude special items.

Net financing revenue was $1.72 billion, up $125 million year over year, as continued strength in auto pricing and origination volume and incremental loan growth outweighed higher funding costs. Adjusted total net revenue was $2.09 billion compared to $2.11 billion, last year. Analysts on average had estimated $2.16 billion in revenue.

Ally's board approved a $0.30 per share common dividend for the fourth quarter of 2022.

Shares of Ally Financial are down 7% in pre-market trade on Wednesday.

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