Auto financing company Credit Acceptance (NASDAQ: CACC) will be reporting results this Tuesday after market close. Here’s what you need to know.
Credit Acceptance missed analysts’ revenue expectations last quarter, reporting revenues of $408.2 million, up 3% year on year. It was a slower quarter for the company, with and a significant miss of analysts’ revenue estimates.
Is Credit Acceptance a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Credit Acceptance’s revenue to grow 16.6% year on year, improving from the 8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Credit Acceptance’s peers in the consumer finance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Ally Financial delivered year-on-year revenue growth of 5.5%, beating analysts’ expectations by 1.7%, and Sallie Mae reported a revenue decline of 3.6%, topping estimates by 3.9%. Ally Financial traded up 10.3% following the results while Sallie Mae was also up 1.8%.
Read our full analysis of Ally Financial’s results here and Sallie Mae’s results here.
There has been positive sentiment among investors in the consumer finance segment, with share prices up 8.8% on average over the last month. Credit Acceptance is up 14.5% during the same time and is heading into earnings with an average analyst price target of $481.67 (compared to the current share price of $504.87).
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