Ally Financial Earnings Beat Drives Shares 7% Higher Despite Revenue Miss

Ally Financial Inc. (NYSE:ALLY) reported first-quarter earnings that exceeded expectations, sending shares up more than 7% intraday Friday as investors focused on improved profitability.

The company posted adjusted earnings per share of $1.11, beating the consensus estimate of $0.94. Revenue totaled $2.1 billion, slightly below the $2.14 billion forecast.

Adjusted EPS surged 90% from $0.58 in the prior-year quarter. On a GAAP basis, net income attributable to common shareholders reached $291 million, compared with a loss of $253 million a year earlier.

Net financing revenue increased $111 million year over year to $1.6 billion, while net interest margin excluding core original issue discount expanded 17 basis points to 3.52%. Total GAAP revenue rose 36% year over year.

The company originated $11.5 billion in consumer auto loans during the quarter, representing a 13% increase year over year and supported by a record 4.4 million consumer applications.

Retail deposits reached $146.1 billion across 3.5 million customers, marking the 68th consecutive quarter of customer growth.