From 24/7 Wall St. · Trey Thoelcke · · 1m
GM and Ally Earnings Preview: Wall Street's Car Buyer Test
GM beats earnings with strong margins while Ally faces credit pressure as Wall Street watches American car buyers.
In brief
GM beats earnings with strong margins while Ally faces credit pressure as Wall Street watches American car buyers. GM reports six straight earnings beats and strong margins, while Ally sees analyst downgrades and rising credit risk. Originally reported by 24/7 Wall St..
GM Earnings Beat
General Motors reports six straight earnings beats with adjusted EPS of $3.57 ahead of $3.18 consensus.
Ally Earnings Miss
Ally Financial misses Q3 EPS estimate of $1.22 with adjusted EPS at $1.21 despite record applications.
Margin Shifts
GM North America margin expands 2.5 points to 8.6% while Ally retail deposit rates fall to 3.12%.
Credit Pressure
Ally's second quarter retail auto net charge-offs at 1.57% below full-year guidance of 1.8% to 2.0%.
Analyst Downgrades
13 analyst downward revisions to Q3 EPS estimates over the past 30 days show growing caution.
CEO Statement
GM CEO Mary Barra says stock is undervalued and they have the strongest vehicle portfolio ever.
What matters most
GM reports six straight earnings beats and strong margins, while Ally sees analyst downgrades and rising credit risk.
