Ally Financial's stock fell sharply by 6.42% during Wednesday's intraday session, driven by investor disappointment over its mixed fourth-quarter earnings report.
The company reported adjusted earnings of $1.09 per share, surpassing the FactSet estimate of $1.02. However, net revenue of $2.12 billion fell short of the expected $2.14 billion. Additionally, Ally Financial set aside $487 million in provisions for credit losses, signaling potential risks in its loan portfolio.
While the company reversed a year-ago loss with a net income of $300 million, the revenue miss and elevated credit loss provisions appear to have overshadowed the positive earnings performance, leading to the stock's decline.
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