Credit Acceptance (NASDAQ:CACC) Posts Earnings Results, Beats Expectations By $0.15 EPS

Credit Acceptance (NASDAQ:CACC) announced its earnings results on Thursday. The credit services provider reported $13.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $12.86 by $0.15, FiscalAI reports. Credit Acceptance had a net margin of 21.54% and a return on equity of 31.67%. The firm had revenue of $420.30 million for the quarter, compared to analysts’ expectations of $596.40 million. During the same period in the prior year, the company earned $10.28 EPS. The business’s revenue was up 2.1% compared to the same quarter last year.

Here are the key takeaways from Credit Acceptance’s conference call:

• Positive Sentiment: Third-quarter growth accelerated, with consumer loan assignments up 38% year over year, dollar volume up 51%, and active dealers reaching a record 12,093. Economic profit rose 18% to $50.7 million, while economic profit per diluted share increased 30% to $4.87.
• Positive Sentiment: The company reported stronger commercial execution, expanded aggregator integrations, and higher volume per active dealer, contributing to market-share gains in its core subprime used-vehicle segment. Operating expenses fell 10% year over year despite increased investment in growth initiatives.
• Negative Sentiment: Credit Acceptance reduced forecasted collection rates for loans assigned from 2022 through 2026, resulting in a $291 million, or 2.5%, decline in forecasted net cash flows during the quarter. Management attributed most of the adjustment to underperformance in lower internal risk bands, though newer scorecard cohorts remain relatively unseasoned.
• Positive Sentiment: Adjusted net income increased 15% to $135.5 million, and the company repurchased $161.6 million of stock during the quarter. Liquidity stood at $1.2 billion, while a $600 million securitization achieved the company’s lowest credit spreads since late 2021, supporting continued loan growth.
• Neutral Sentiment: The company said agreements resolving New York and multistate regulatory matters should not materially affect its growth strategy or operating model. Management is continuing to invest in data, AI, digital servicing, and leadership capabilities to improve pricing, forecasting, dealer engagement, and consumer support.

Credit Acceptance Stock Up 5.7%

NASDAQ:CACC opened at $575.78 on Friday. The company has a debt-to-equity ratio of 3.84, a current ratio of 14.89 and a quick ratio of 14.89. Credit Acceptance has a 1-year low of $401.90 and a 1-year high of $668.86. The company has a 50-day moving average of $566.72 and a 200 day moving average of $537.43. The firm has a market cap of $6.02 billion, a PE ratio of 12.66 and a beta of 1.40.

Credit Acceptance News Summary

Here are the key news stories impacting Credit Acceptance this week:

• Positive Sentiment: Adjusted earnings were $13.01 per diluted share, ahead of the $12.86 analyst consensus and up from $10.28 a year earlier. Adjusted net income rose to $135.5 million from $117.9 million, supporting the positive investor reaction. Credit Acceptance Corporation Reports Third-Quarter Earnings Results
• Positive Sentiment: Revenue increased 2.1% year over year to approximately $594.6 million, while the company highlighted a record number of dealers. The growth indicates continued expansion of Credit Acceptance’s dealer network and loan-origination platform. Credit Acceptance Q3 2026: Record Dealers, but a Forecast Change Stings
• Neutral Sentiment: Management’s earnings call and presentation provided additional context on the quarter’s results, including the difference between reported GAAP earnings and adjusted performance. Investors appear to be weighing improving underlying profitability against changes in forecasts and accounting impacts. Credit Acceptance Q3 2026 Earnings Call Transcript
• Negative Sentiment: Credit Acceptance reported a GAAP net loss of $56.6 million, or $5.43 per diluted share, compared with net income of $108.2 million, or $9.43 per share, in the prior-year quarter. A forecast-related change or adjustment also remains a concern for investors, while revenue came in slightly below the approximately $596.4 million consensus estimate. Credit Acceptance Announces Third-Quarter 2026 Results

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Weiss Ratings reiterated a “buy (b-)” rating on shares of Credit Acceptance in a report on Wednesday, October 14th. TD Cowen lowered their price target on Credit Acceptance from $600.00 to $590.00 and set a “hold” rating for the company in a research report on Tuesday, October 6th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Credit Acceptance has a consensus rating of “Hold” and an average target price of $565.00.

About Credit Acceptance

Credit Acceptance Corporation (NASDAQ:CACC) is a specialized automobile finance company that provides financing programs for consumers who may have difficulty obtaining credit through traditional lenders. The company primarily operates through an indirect lending model, working with automobile dealers who offer financing to customers purchasing new or used vehicles.

Credit Acceptance purchases or services automotive loans originated through its dealer-partner network. Its programs are designed to help dealers sell vehicles to a broader range of consumers, while the company manages loan underwriting, servicing, collections, and related risk-management activities.