It has been about a month since the last earnings report for Credit Acceptance (CACC). Shares have added about 0.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Credit Acceptance due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Credit Acceptance Q1 Earnings Beat as Revenues Grow & Provisions Decline
Credit Acceptance’s first-quarter 2026 adjusted earnings per share of $10.71 surpassed the Zacks Consensus Estimate of $10.61. Also, the bottom line increased 14.5% year over year.
Results were aided by an improvement in revenues and lower provisions. However, an increase in operating expenses hurt the results to some extent.
Including non-recurring items, net income was $135.8 million or $12.40 per share compared with $106.3 million or $8.66 per share in the prior-year quarter.
GAAP Revenues Improve, Operating Expenses Rise
Total GAAP revenues were $580 million, up 1.6% year over year. Increased finance charges mainly supported revenue growth.
Provision for credit losses was $139.6 million, down 13.8% year over year.
Total operating expenses of $141.2 million increased 4.2% from the prior-year quarter.
As of March 31, 2026, net loans receivable were $7.96 billion, up marginally from the end of December 2025.
Total assets were $8.69 billion as of the same date, up marginally from Dec. 31, 2025. Total shareholders’ equity was $1.51 billion, down marginally from Dec. 31, 2025.
Share Repurchase Update
During the reported quarter, Credit Acceptance repurchased 365,258 shares for $178.9 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Credit Acceptance has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Credit Acceptance has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Credit Acceptance Corporation (CACC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).