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Ally Financial (ALLY - Free Report) came out with quarterly earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.25 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -3.20%. A quarter ago, it was expected that this auto finance company and bank would post earnings of $0.93 per share when it actually produced earnings of $1.11, delivering a surprise of +19.35%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Ally Financial, which belongs to the Zacks Financial - Consumer Loans industry, posted revenues of $2.29 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.44%. This compares to year-ago revenues of $2.08 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Ally Financial shares have added about 0.5% since the beginning of the year versus the S&P 500's gain of 8.7%.

What's Next for Ally Financial?While Ally Financial has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Ally Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.46 on $2.3 billion in revenues for the coming quarter and $5.32 on $8.84 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Consumer Loans is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Navient (NAVI - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.

This student loan servicing company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -9.5%. The consensus EPS estimate for the quarter has been revised 18.2% lower over the last 30 days to the current level.

Navient's revenues are expected to be $129.07 million, down 1.5% from the year-ago quarter.

, /PRNewswire/ -- The board of directors of Ally Financial Inc. (NYSE: ALLY) declared a quarterly cash dividend of $0.30 per share of the company's common stock, payable on August 14, 2026, to shareholders of record on July 31, 2026, as well as quarterly dividend payments for the company's Series C and Series D preferred stock securities, payable on August 15, 2026.

A quarterly dividend payment was declared on Ally's 4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C, of approximately $11.8 million, or $11.75 per share, and is payable to shareholders of record as of July 31, 2026. Additionally, a dividend payment was declared on Ally's 7.100% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D, of approximately $20.5 million, or $20.51 per share, and is payable to shareholders of record as of July 31, 2026.

About Ally Financial
Ally Financial Inc. (NYSE: ALLY) includes the nation's largest all-digital bank and auto finance business, driven by a mission to "Do It Right" for its customers and communities. Ally is a U.S. financial holding company with $197 billion in assets and 9.5 million customers (March 31, 2026). Ally Bank, Member FDIC, offers online banking products, including high-yield savings and no hidden fee checking, and was the first major U.S. bank to eliminate overdraft fees. Ally also provides investing solutions through Ally Invest, including online brokerage, automated investing, IRAs and personal advice. As a leader in auto finance, Ally provides consumer and dealer financing, insurance, and vehicle remarketing services. Ally's seasoned corporate finance business provides capital to equity sponsors and middle-market companies. Visit ally.com.

Contacts:

Sean Leary
Ally Investor Relations
704-444-4830
[email protected]

Peter Gilchrist
Ally Communications (Media)
704-644-6299
[email protected]

SOURCE Ally Financial

Wall Street expects a year-over-year increase in earnings on higher revenues when Ally Financial (ALLY - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 21. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis auto finance company and bank is expected to post quarterly earnings of $1.27 per share in its upcoming report, which represents a year-over-year change of +28.3%.

Revenues are expected to be $2.23 billion, up 6.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.55% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Ally Financial?For Ally Financial, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.41%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Ally Financial will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Ally Financial would post earnings of $0.93 per share when it actually produced earnings of $1.11, delivering a surprise of +19.35%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Ally Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.