Earnings Outlook For Credit Acceptance

Credit Acceptance CACC is preparing to release its quarterly earnings on Wednesday, 2025-04-30. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Credit Acceptance to report an earnings per share (EPS) of $9.67.

Anticipation surrounds Credit Acceptance's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $2.24, leading to a 1.22% drop in the share price the following trading session.

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

Tracking Credit Acceptance's Stock Performance

Shares of Credit Acceptance were trading at $487.65 as of April 28. Over the last 52-week period, shares are down 1.3%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Opinions on Credit Acceptance

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Credit Acceptance.

Analysts have given Credit Acceptance a total of 2 ratings, with the consensus rating being Neutral. The average one-year price target is $475.0, indicating a potential 2.59% downside.

Peer Ratings Comparison

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

• Analysts currently favor an Outperform trajectory for FirstCash Hldgs, with an average 1-year price target of $137.0, suggesting a potential 71.91% downside.
• Analysts currently favor an Buy trajectory for Enova International, with an average 1-year price target of $134.5, suggesting a potential 72.42% downside.

Overview of 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 is positioned in the middle among its peers for revenue growth. It ranks at the bottom for gross profit and return on equity.

Discovering Credit Acceptance: A Closer Look

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.

Credit Acceptance: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Credit Acceptance displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 14.89%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: Credit Acceptance's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 27.24%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.95%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Credit Acceptance's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.73% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a high debt-to-equity ratio of 3.63, 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.