What to Expect from Credit Acceptance's Earnings
Benzinga Insights 9 months ago
Earnings
Credit Acceptance (NASDAQ:CACC) is set to give its latest quarterly earnings report on Thursday, 2026-01-29. Here's what investors need to know before the announcement.
Analysts estimate that Credit Acceptance will report an earnings per share (EPS) of $10.03.
Credit Acceptance bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Overview of Past Earnings
The company's EPS beat by $0.76 in the last quarter, leading to a 1.11% drop in the share price on the following day.
Here's a look at Credit Acceptance's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 9.52 | 9.83 | 9.67 | 7.93 |
| EPS Actual | 10.28 | 8.56 | 9.35 | 10.17 |
| Price Change % | -1.00 | -9.00 | -4.00 | -1.00 |
Tracking Credit Acceptance's Stock Performance
Shares of Credit Acceptance were trading at $437.72 as of January 27. Over the last 52-week period, shares are down 15.5%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Opinions on Credit Acceptance
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Credit Acceptance.
Credit Acceptance has received a total of 1 ratings from analysts, with the consensus rating as Sell. With an average one-year price target of $430.0, the consensus suggests a potential 1.76% downside.
Comparing Ratings with Competitors
In this comparison, we explore the analyst ratings and average 1-year price targets of Enova International, Dave and FirstCash Hldgs, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Enova International, with an average 1-year price target of $188.0, suggesting a potential 57.05% downside.
- Analysts currently favor an Outperform trajectory for Dave, with an average 1-year price target of $299.43, suggesting a potential 31.59% downside.
- Analysts currently favor an Buy trajectory for FirstCash Hldgs, with an average 1-year price target of $199.33, suggesting a potential 54.46% downside.
Insights: Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Enova International, Dave and FirstCash Hldgs, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Credit Acceptance | Sell | 6.03% | $356M | 6.91% |
| Enova International | Buy | 16.34% | $373.75M | 6.39% |
| Dave | Outperform | 62.97% | $130.75M | 36.22% |
| FirstCash Hldgs | Buy | 11.73% | $473.71M | 3.82% |
Key Takeaway:
Credit Acceptance ranks at the bottom for Revenue Growth, with the lowest percentage among peers. It also has the lowest Gross Profit compared to others. However, it has a higher Return on Equity than one of its peers. Overall, Credit Acceptance is positioned lower compared to its peers in terms of financial performance metrics.
Unveiling the Story Behind Credit Acceptance
Credit Acceptance Corp is a consumer finance company that specializes in automobile loans. These loans are offered through a U.S. nationwide network of automobile dealers that benefit from sales of vehicles to consumers who could otherwise not obtain financing. The company also benefits from repeat and referral sales, and from sales to customers responding to advertisements for financing, but qualify for traditional financing. The company derives its revenue from finance charges, premiums earned on the reinsurance of vehicle service contracts, and other fees. Of these, financing charges, including servicing fees, are by far a source of revenue.
Financial Insights: Credit Acceptance
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Credit Acceptance's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2025, the company achieved a revenue growth rate of approximately 6.03%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.
Net Margin: Credit Acceptance's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 18.77% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Credit Acceptance's ROE stands out, surpassing industry averages. With an impressive ROE of 6.91%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Credit Acceptance's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.25%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 4.03, caution is advised due to increased financial risk.
To track all earnings releases for Credit Acceptance visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.