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Credit Acceptance (CACC) Q3 Earnings: What To Expect

CACC Cover Image

Auto financing company Credit Acceptance (NASDAQ: CACC) will be reporting results this Thursday afternoon. Here’s what to look for.

Credit Acceptance met analysts’ revenue expectations last quarter, reporting revenues of $583.8 million, up 48.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates.

Is Credit Acceptance a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Credit Acceptance’s revenue to grow 31.8% year on year to $503.9 million, improving from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $9.45 per share.

Credit Acceptance Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Credit Acceptance’s peers in the consumer finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Ally Financial delivered year-on-year revenue growth of 1.5%, beating analysts’ expectations by 2.6%, and SoFi reported revenues up 37.9%, topping estimates by 6.3%. Ally Financial traded up 5.3% following the results.

Read our full analysis of Ally Financial’s results here and SoFi’s results here.

Investors in the consumer finance segment have had steady hands going into earnings, with share prices flat over the last month. Credit Acceptance is up 9.9% during the same time and is heading into earnings with an average analyst price target of $462.50 (compared to the current share price of $494.17).

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