Credit Acceptance Corp. (NASDAQ:CACC) Expected to Post Earnings of $4.19 Per Share

Analysts expect Credit Acceptance Corp. (NASDAQ:CACC) to report earnings of $4.19 per share for the current quarter, according to Zacks. Three analysts have issued estimates for Credit Acceptance’s earnings, with estimates ranging from $3.75 to $4.88. Credit Acceptance posted earnings per share of $8.08 in the same quarter last year, which suggests a negative year over year growth rate of 48.1%. The business is scheduled to issue its next earnings results on Monday, May 4th.

According to Zacks, analysts expect that Credit Acceptance will report full year earnings of $21.83 per share for the current year, with EPS estimates ranging from $19.01 to $24.83. For the next year, analysts expect that the business will post earnings of $29.87 per share, with EPS estimates ranging from $27.94 to $31.79. Zacks Investment Research’s EPS averages are a mean average based on a survey of research firms that that provide coverage for Credit Acceptance.

Credit Acceptance (NASDAQ:CACC) last issued its quarterly earnings results on Thursday, January 30th. The credit services provider reported $9.22 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $8.85 by $0.37. Credit Acceptance had a net margin of 44.06% and a return on equity of 29.72%. The business had revenue of $385.90 million for the quarter, compared to analyst estimates of $385.34 million. During the same quarter in the prior year, the business posted $7.85 EPS. Credit Acceptance’s revenue for the quarter was up 12.6% compared to the same quarter last year.

A number of brokerages have issued reports on CACC. Credit Suisse Group restated a “sell” rating and set a $390.00 price target on shares of Credit Acceptance in a research note on Sunday, February 2nd. BidaskClub upgraded shares of Credit Acceptance from a “sell” rating to a “hold” rating in a research note on Friday, January 24th. Stephens upgraded shares of Credit Acceptance from an “underweight” rating to an “equal weight” rating in a research note on Friday, January 3rd. ValuEngine upgraded shares of Credit Acceptance from a “sell” rating to a “hold” rating in a research note on Friday, January 3rd. Finally, BMO Capital Markets cut their price objective on shares of Credit Acceptance to $472.00 and set an “in-line” rating on the stock in a research note on Tuesday, November 5th. Three research analysts have rated the stock with a sell rating and six have given a hold rating to the company. Credit Acceptance currently has a consensus rating of “Hold” and a consensus price target of $444.17.

Credit Acceptance stock traded up $3.00 during mid-day trading on Friday, reaching $437.01. 53,901 shares of the company traded hands, compared to its average volume of 135,619. The company has a debt-to-equity ratio of 1.75, a current ratio of 29.49 and a quick ratio of 29.49. Credit Acceptance has a fifty-two week low of $385.36 and a fifty-two week high of $509.99. The company has a market capitalization of $7.93 billion, a price-to-earnings ratio of 12.61, a price-to-earnings-growth ratio of 1.86 and a beta of 0.77. The firm’s fifty day moving average is $442.93 and its two-hundred day moving average is $449.51.

In other news, Director Glenda J. Flanagan sold 3,125 shares of the stock in a transaction on Friday, February 7th. The shares were sold at an average price of $447.69, for a total value of $1,399,031.25. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Prescott General Partners Llc sold 15,000 shares of the stock in a transaction on Friday, January 17th. The stock was sold at an average price of $450.07, for a total transaction of $6,751,050.00. The disclosure for this sale can be found here. Insiders sold 146,525 shares of company stock worth $65,460,790 in the last quarter. Company insiders own 5.00% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in CACC. Usca Ria LLC purchased a new stake in Credit Acceptance during the third quarter worth $30,000. CWM LLC purchased a new position in Credit Acceptance during the fourth quarter valued at $38,000. NumerixS Investment Technologies Inc purchased a new position in Credit Acceptance during the fourth quarter valued at $88,000. Smithfield Trust Co. purchased a new position in Credit Acceptance during the third quarter valued at $96,000. Finally, James Investment Research Inc. purchased a new position in Credit Acceptance during the third quarter valued at $134,000. 59.59% of the stock is currently owned by hedge funds and other institutional investors.

Credit Acceptance Company Profile

Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts collected from the consumers.

Read More: Are sell-side analysts objective?

Get a free copy of the Zacks research report on Credit Acceptance (CACC)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Credit Acceptance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Credit Acceptance and related companies with MarketBeat.com's FREE daily email newsletter.