- Credit Acceptance‘s fourth-quarter provision for credit losses was significantly lower than predicted, coming in at $123.4 million compared to the $167.8 million estimate.
- The company’s adjusted earnings per share (EPS) impressed at $10.17, exceeding the market expectation of $8.41.
- Total revenue for the quarter was reported at $565.9 million, slightly surpassing the estimated $561.3 million.
- Adjusted net income reached $126.0 million, outperforming the projected $105.8 million.
- Analyst recommendations for Credit Acceptance include 1 buy, 4 holds, and 2 sells.
Credit Acceptance on Smartkarma
According to the research report by Value Investors Club on Smartkarma, Credit Acceptance Corporation is highlighted as a company focusing on providing vehicle ownership to consumers, regardless of credit history. With a strong presence in the subprime auto lending market for over 50 years, Credit Acceptance utilizes internal data analysis to enhance risk pricing. Despite facing challenges due to COVID, the company is poised for EPS growth in 2024, presenting a favorable risk/reward opportunity for investors. The report, originally published on Value Investors Club three months ago, affirms a bullish sentiment towards Credit Acceptance.
A look at Credit Acceptance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Credit Acceptance Corporation shows mixed long-term potential. While the company demonstrates strong momentum with a top score of 5, indicating a positive trend in performance, other factors such as value, growth, resilience, and dividend show varying levels of outlook. These scores suggest that Credit Acceptance may have solid momentum but faces challenges in areas like value and dividend returns.
Credit Acceptance Corporation, operating in the United States, provides vital financial services to automobile dealers and buyers with limited credit access. With a diverse range of offerings including funding, receivables management, and sales training, the company plays a crucial role in supporting the automotive industry. However, the Smartkarma Smart Scores highlight a need for careful consideration of the company’s overall financial health and potential for growth in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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