Credit Acceptance Corporation’s CACC second-quarter 2026 adjusted earnings per share of $12.12 surpassed the Zacks Consensus Estimate of $11.46. The bottom line increased 20.6% year over year.
Shares of CACC lost 2.2% during after-market trading.
Results were aided by a marginal rise in revenues and lower provisions and operating expenses.
Including non-recurring items, net income was $135.9 million or $12.66 per share, up from $87.4 million or $7.42 per share in the prior-year quarter.
CACC’s GAAP Revenues Improve, Operating Expenses Decline
Total GAAP revenues were $587.4 million, up 0.6% year over year. Increased finance charges and premiums earned supported revenue growth.
Provision for credit losses was $159.2 million, down 7.8%.
Total operating expenses of $134.1 million decreased 13.8% from the prior-year quarter.
As of June 30, 2026, net loans receivable were $7.96 billion, up marginally from the end of December 2025.
Total assets were $8.62 billion as of the same date, down marginally from Dec. 31, 2025. Total shareholders’ equity was $1.59 billion, up 4.3% from Dec. 31, 2025.
During the reported quarter, Credit Acceptance repurchased 0.3 shares for $141.4 million.
Our Take on Credit Acceptance
CACC is well-positioned for revenue growth, given strengthening origination trends and continued momentum across its dealer network. Growth in active dealers is another positive. However, elevated expenses are a concern.
Credit Acceptance Corporation Price, Consensus and EPS Surprise
Credit Acceptance Corporation price-consensus-eps-surprise-chart | Credit Acceptance Corporation Quote
Currently, Credit Acceptance carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of CACC’s Peers
OneMain Holdings’ OMF second-quarter 2026 adjusted earnings of $1.31 per share in the consumer and insurance (C&I) segment matched the Zacks Consensus Estimate. However, the bottom line declined 9.7% from the year-ago quarter.
Results were primarily driven by an increase in net interest income (NII) and other revenues. A sequential increase in net finance receivables was another positive for the company. However, higher total other expenses and provisions hurt OMF’s results to an extent.
Enova International, Inc. ENVA reported second-quarter 2026 adjusted earnings per share of $4.31, which increased from $3.23 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.99.
ENVA’s results benefited from increased revenues and improving credit quality. However, higher expenses were a headwind.
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Credit Acceptance Corporation (CACC): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).