Credit Acceptance (CACC) Q4 Earnings and Revenues Surpass Estimates

Core Insights - Credit Acceptance (CACC) reported quarterly earnings of $12.26 per share, significantly exceeding the Zacks Consensus Estimate of $6.82 per share, and up from $7.29 per share a year ago, representing an earnings surprise of 79.77% [1] - The company posted revenues of $565.9 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.62% and increasing from $491.6 million year-over-year [2] - Credit Acceptance shares have increased approximately 11.8% year-to-date, outperforming the S&P 500's gain of 2.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $6.82, with expected revenues of $556.82 million, and for the current fiscal year, the EPS estimate is $33.57 on revenues of $2.35 billion [7] - The estimate revisions trend for Credit Acceptance is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - Consumer Loans industry, to which Credit Acceptance belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Encore Capital Group (ECPG), is expected to report quarterly earnings of $1.55 per share, reflecting a year-over-year increase of 24%, with revenues anticipated to be $373.71 million, up 34.7% from the previous year [9][10]