Zacks: Brokerages Anticipate Credit Acceptance Corp. (CACC) Will Post Quarterly Sales of $324.25 Million

Brokerages expect that Credit Acceptance Corp. (NASDAQ:CACC) will announce sales of $324.25 million for the current quarter, Zacks reports. Three analysts have issued estimates for Credit Acceptance’s earnings, with estimates ranging from $293.00 million to $342.56 million. Credit Acceptance posted sales of $287.30 million during the same quarter last year, which would indicate a positive year over year growth rate of 12.9%. The company is scheduled to report its next earnings report on Tuesday, January 29th.

On average, analysts expect that Credit Acceptance will report full year sales of $1.23 billion for the current financial year, with estimates ranging from $1.12 billion to $1.29 billion. For the next fiscal year, analysts expect that the business will report sales of $1.39 billion, with estimates ranging from $1.27 billion to $1.47 billion. Zacks’ sales calculations are an average based on a survey of sell-side analysts that follow Credit Acceptance.

Credit Acceptance (NASDAQ:CACC) last posted its earnings results on Monday, October 29th. The credit services provider reported $7.75 EPS for the quarter, topping the consensus estimate of $6.90 by $0.85. Credit Acceptance had a net margin of 48.70% and a return on equity of 28.83%. The business had revenue of $332.00 million for the quarter, compared to the consensus estimate of $327.45 million. During the same period last year, the company earned $5.43 EPS. The firm’s revenue was up 16.9% compared to the same quarter last year.

Several research firms recently commented on CACC. Susquehanna Bancshares lifted their target price on shares of Credit Acceptance from $350.00 to $371.00 and gave the stock a “hold” rating in a research report on Wednesday, August 1st. Oppenheimer set a $420.00 target price on shares of Credit Acceptance and gave the stock a “buy” rating in a research report on Tuesday, October 30th. BMO Capital Markets lifted their target price on shares of Credit Acceptance from $305.00 to $312.00 and gave the stock a “market perform” rating in a research report on Thursday, August 2nd. Compass Point upgraded shares of Credit Acceptance from a “sell” rating to a “neutral” rating in a research report on Wednesday, August 1st. Finally, BidaskClub downgraded shares of Credit Acceptance from a “buy” rating to a “hold” rating in a research report on Thursday. Three analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average price target of $366.57.

NASDAQ:CACC opened at $422.49 on Friday. The company has a debt-to-equity ratio of 1.97, a quick ratio of 36.75 and a current ratio of 36.75. Credit Acceptance has a one year low of $278.38 and a one year high of $467.26. The company has a market cap of $8.05 billion, a P/E ratio of 20.67, a price-to-earnings-growth ratio of 0.90 and a beta of 0.56.

In other Credit Acceptance news, insider Arthur L. Smith sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 22nd. The shares were sold at an average price of $460.98, for a total transaction of $921,960.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Prescott General Partners Llc sold 9,506 shares of the firm’s stock in a transaction that occurred on Thursday, November 8th. The stock was sold at an average price of $423.39, for a total transaction of $4,024,745.34. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 69,979 shares of company stock valued at $30,743,114. Company insiders own 5.40% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the business. Swiss National Bank raised its holdings in Credit Acceptance by 71.3% during the 2nd quarter. Swiss National Bank now owns 20,177 shares of the credit services provider’s stock worth $7,131,000 after purchasing an additional 8,400 shares during the last quarter. Neuburgh Advisers LLC increased its stake in shares of Credit Acceptance by 328.6% in the 2nd quarter. Neuburgh Advisers LLC now owns 960 shares of the credit services provider’s stock valued at $339,000 after acquiring an additional 736 shares in the last quarter. Schwab Charles Investment Management Inc. increased its stake in shares of Credit Acceptance by 4.1% in the 2nd quarter. Schwab Charles Investment Management Inc. now owns 86,218 shares of the credit services provider’s stock valued at $30,470,000 after acquiring an additional 3,356 shares in the last quarter. Alps Advisors Inc. increased its stake in shares of Credit Acceptance by 22.2% in the 2nd quarter. Alps Advisors Inc. now owns 1,754 shares of the credit services provider’s stock valued at $567,000 after acquiring an additional 319 shares in the last quarter. Finally, Cambridge Investment Research Advisors Inc. increased its stake in shares of Credit Acceptance by 17.2% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 1,244 shares of the credit services provider’s stock valued at $440,000 after acquiring an additional 183 shares in the last quarter. Hedge funds and other institutional investors own 67.56% of the company’s stock.

About Credit Acceptance

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.

Featured Story: How to Invest in Growth Stocks

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

Earnings History and Estimates for Credit Acceptance (NASDAQ:CACC)

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.

Leave a Reply