: Ally Financial stock falls after it sees ‘tightened underwriting’ impacting retail auto loans and misses its Q1 earnings mark


Ally Financial Inc. ALLY, -0.89% stock fell 3.5% in premarket trades after the auto and home lender said it expects 2023 retail auto originations to be on the lower end of its estimated low-$40 billion range because of “tightened underwriting.” It also missed its first-quarter adjusted earnings target. Changes to its expected funding mix and lower retail auto loan originations will “put near-tern net interest margin under pressure,” the company said. Ally said it expects 2023 net interest margin of about 3.5%, which is in line with the analyst estimate of 3.47% net interest margin, according to FactSet estimates. Ally Financial reported first-quarter adjusted earnings of 82 cents a share on revenue of $2.10 billion. The company missed the analyst estimate of 86 cents a share and narrowly beat the revenue forecast of $2.07 billion.

This article was originally published by Marketwatch.com. Read the original article here.

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