- Provision for credit losses was $172.6 million, falling short of the estimate of $147.4 million.
- Adjusted earnings per share (EPS) came in at $8.56, below the expected $9.94.
- Revenue totaled $583.8 million, slightly above the projection of $581 million.
- Finance revenue reached $540.7 million, surpassing the estimate of $531.8 million.
- Premium revenue was $24.1 million, under the estimated $24.6 million.
- Other revenue fell short of expectations at $19.0 million against an estimated $19.8 million.
- Adjusted net income was reported at $100.8 million, missing the forecast of $121.4 million.
- Consumer loan unit volume decreased by 14.6%.
- Consumer loan dollar volume saw a decline of 18.8%.
- Analyst recommendations include 0 buys, 5 holds, and 1 sell.
A look at Credit Acceptance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
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
Analysts reviewing Smartkarma Smart Scores for Credit Acceptance indicate a mixed long-term outlook for the company. While the company scores decently on value, resilience, and momentum, it falls short in terms of dividends and growth potential. With a solid value score and demonstrated resilience, Credit Acceptance is positioned to weather economic downturns and maintain stable performance. Moreover, its momentum score suggests positive market sentiment and potential for continued growth. However, the lower scores in dividends and growth may signal challenges in these areas that could impact long-term investor returns.
Credit Acceptance Corporation provides indirect financing services for automobile buyers in the U.S. The company focuses on supporting customers with limited access to traditional credit sources, bridging the gap for those seeking vehicle financing. With a diverse range of services catering to dealers and buyers, Credit Acceptance plays a crucial role in the automotive financing ecosystem. The company’s operations primarily center around the United States, showcasing its commitment to serving the domestic market.
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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