Analysts Expect Credit Acceptance Corp. (CACC) to Post $5.27 EPS

Brokerages expect that Credit Acceptance Corp. (NASDAQ:CACC) will report earnings per share of $5.27 for the current quarter, Zacks Investment Research reports. Three analysts have provided estimates for Credit Acceptance’s earnings, with the highest EPS estimate coming in at $5.41 and the lowest estimate coming in at $5.11. Credit Acceptance reported earnings per share of $4.33 during the same quarter last year, which suggests a positive year-over-year growth rate of 21.7%. The company is expected to announce its next quarterly earnings results on Tuesday, January 30th.

On average, analysts expect that Credit Acceptance will report full-year earnings of $20.26 per share for the current fiscal year, with EPS estimates ranging from $20.10 to $20.40. For the next fiscal year, analysts anticipate that the business will post earnings of $23.80 per share, with EPS estimates ranging from $21.85 to $26.88. Zacks Investment Research’s EPS averages are an average based on a survey of research analysts that cover Credit Acceptance.

Credit Acceptance (NASDAQ:CACC) last released its quarterly earnings results on Monday, October 30th. The credit services provider reported $5.43 EPS for the quarter, beating analysts’ consensus estimates of $5.15 by $0.28. Credit Acceptance had a return on equity of 32.08% and a net margin of 35.29%. The firm had revenue of $283.90 million for the quarter, compared to analyst estimates of $281.03 million. During the same quarter in the previous year, the company posted $4.53 EPS. The business’s revenue was up 15.1% on a year-over-year basis.

CACC has been the topic of several research analyst reports. BidaskClub lowered Credit Acceptance from a “strong-buy” rating to a “buy” rating in a research report on Saturday, January 6th. Oppenheimer initiated coverage on Credit Acceptance in a research report on Monday, January 8th. They set a “buy” rating and a $355.00 target price on the stock. Jefferies Group restated a “hold” rating and set a $260.00 target price (up previously from $240.00) on shares of Credit Acceptance in a research report on Tuesday, October 10th. BMO Capital Markets restated a “hold” rating and set a $238.00 target price on shares of Credit Acceptance in a research report on Friday, October 6th. Finally, Zacks Investment Research lowered Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 3rd. Four investment analysts have rated the stock with a sell rating, five have assigned a hold rating, one has issued a buy rating and two have given a strong buy rating to the stock. The stock has an average rating of “Hold” and an average price target of $263.50.

In related news, major shareholder Jill Foss Watson sold 35,318 shares of the company’s stock in a transaction that occurred on Thursday, December 28th. The stock was sold at an average price of $326.14, for a total transaction of $11,518,612.52. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Over the last ninety days, insiders have sold 114,925 shares of company stock worth $37,901,719. 5.80% of the stock is owned by company insiders.

A number of hedge funds have recently bought and sold shares of CACC. Koch Industries Inc. acquired a new position in Credit Acceptance during the 2nd quarter worth approximately $240,000. Goldman Sachs Group Inc. raised its stake in Credit Acceptance by 479.4% during the 2nd quarter. Goldman Sachs Group Inc. now owns 138,545 shares of the credit services provider’s stock worth $35,626,000 after buying an additional 114,632 shares during the period. First Trust Advisors LP raised its stake in Credit Acceptance by 5,945.1% during the 3rd quarter. First Trust Advisors LP now owns 53,378 shares of the credit services provider’s stock worth $14,955,000 after buying an additional 52,495 shares during the period. BlackRock Inc. raised its stake in Credit Acceptance by 11.4% during the 2nd quarter. BlackRock Inc. now owns 446,139 shares of the credit services provider’s stock worth $114,720,000 after buying an additional 45,768 shares during the period. Finally, Howard Hughes Medical Institute raised its stake in Credit Acceptance by 55.2% during the 2nd quarter. Howard Hughes Medical Institute now owns 78,918 shares of the credit services provider’s stock worth $20,293,000 after buying an additional 28,082 shares during the period. 70.69% of the stock is currently owned by institutional investors and hedge funds.

Shares of Credit Acceptance (CACC) opened at $340.99 on Friday. Credit Acceptance has a 52-week low of $182.50 and a 52-week high of $344.21. The company has a debt-to-equity ratio of 2.12, a quick ratio of 17.63 and a current ratio of 17.63. The company has a market capitalization of $6,580.00, a PE ratio of 17.68, a P/E/G ratio of 1.03 and a beta of 0.54.

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Credit Acceptance Company Profile

Credit Acceptance Corporation offers financing programs that enable automobile dealers to sell vehicles to consumers. The Company’s financing programs are offered through a network of automobile dealers. The Company has two Dealers financing programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, the Company advances money to dealers (Dealer Loan) in exchange for the right to service the underlying consumer loans.

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