Credit Acceptance Q2 adjusted EPS misses estimates
Overview
Credit Acceptance Q2 2025 adjusted EPS misses analyst expectations, per LSEG data
The finance company's adjusted net income declines, missing analyst estimates, per LSEG data
Co repurchased 530,000 shares, 4.5% of shares outstanding
Result Drivers
COLLECTION RATE DECLINE - Forecasted collection rates decreased, impacting net cash flows by $55.8 mln
LOAN PORTFOLIO GROWTH - Average balance of loan portfolio increased 6.8% from Q2 2024 to $8 bln
CONSUMER LOAN VOLUME DROP - Consumer Loan assignment unit and dollar volumes declined 14.6% and 18.8% from Q2 2024
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EPS | Miss | $8.56 | $9.68 (4 Analysts) |
Q2 EPS |
| $7.42 |
|
Q2 Adjusted Net Income | Miss | $100.80 mln | $119.40 mln (3 Analysts) |
Q2 Net Income |
| $87.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy."
Wall Street's median 12-month price target for Credit Acceptance Corp is $493.00, about 2.3% below its July 30 closing price of $504.55
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: ID:nGNX7L00W5
