Auto financing company Credit Acceptance (NASDAQ: CACC) will be announcing earnings results this Thursday after the bell. Here’s what you need to know.
Credit Acceptance missed analysts’ revenue expectations by 19.6% last quarter, reporting revenues of $405.1 million, up 5.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue 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 17.2% year on year to $464.5 million, improving from the 8.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $9.85 per share.
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 Q4 results, giving us a hint as to what we can expect. Ally Financial delivered year-on-year revenue growth of 3.7%, beating analysts’ expectations by 0.9%, and Sallie Mae reported revenues up 16.4%, topping estimates by 1%. Ally Financial traded down 1% following the results while Sallie Mae was up 3.4%.
Read our full analysis of Ally Financial’s results here and Sallie Mae’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 down 3.9% during the same time and is heading into earnings with an average analyst price target of $465.50 (compared to the current share price of $439.73).
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