Preview: Credit Acceptance's Earnings

Credit Acceptance CACC will release its quarterly earnings report on Wednesday, 2024-10-30. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Credit Acceptance to report an earnings per share (EPS) of $9.05.

Credit Acceptance bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $1.38, leading to a 14.89% drop in the share price the following trading session.

Here's a look at Credit Acceptance's past performance and the resulting price change:

Market Performance of Credit Acceptance's Stock

Shares of Credit Acceptance were trading at $465.59 as of October 28. Over the last 52-week period, shares are up 10.56%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Credit Acceptance

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Credit Acceptance.

Analysts have provided Credit Acceptance with 1 ratings, resulting in a consensus rating of Sell. The average one-year price target stands at $400.0, suggesting a potential 14.09% downside.

Analyzing Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of FirstCash Hldgs and Enova International, three key industry players, offering insights into their relative performance expectations and market positioning.

• For FirstCash Hldgs, analysts project an Buy trajectory, with an average 1-year price target of $130.0, indicating a potential 72.08% downside.
• Enova International is maintaining an Buy status according to analysts, with an average 1-year price target of $101.6, indicating a potential 78.18% downside.

Snapshot: Peer Analysis

The peer analysis summary presents essential metrics for FirstCash Hldgs and Enova International, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Credit Acceptance ranks at the bottom for Revenue Growth among its peers. It also has the lowest Gross Profit margin. However, it has the highest Return on Equity compared to its peers.

All You Need to Know About Credit Acceptance

Credit Acceptance Corp is a consumer finance company that specializes in automobile loans. These loans are offered through a U.S. nationwide network of automobile dealers that benefit from sales of vehicles to consumers who could otherwise not obtain financing. The company also benefits from repeat and referral sales, and from sales to customers responding to advertisements for financing, but qualify for traditional financing. The company derives its revenue from finance charges, premiums earned on the reinsurance of vehicle service contracts, and other fees. Of these, financing charges, including servicing fees, are by far a source of revenue.

Financial Milestones: Credit Acceptance's Journey

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Credit Acceptance displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 12.42%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Credit Acceptance's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -8.87%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Credit Acceptance's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -2.94%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Credit Acceptance's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.58%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 3.82, Credit Acceptance faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Credit Acceptance visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.