Credit Acceptance Q1 adjusted EPS beats estimates

Credit Acceptance

05/05/2026 21:15

Overview

U.S. auto lender's Q1 adjusted EPS beat analyst expectations

Adjusted net income rose 2.2% yr/yr; consumer loan volume declined 4.3%

Company repurchased 3.4% of shares for $178.9 mln in Q1

Outlook

Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

CREDIT LOSS PROVISION - Lower provision for credit losses, mainly due to smaller declines in consumer loan performance and changes in forecasted net cash flow timing, boosted net income

HIGHER YIELDS - Increased finance charges from higher contractual yields on recent consumer loan assignments contributed to results

OPERATING EXPENSES - Higher sales, marketing, and professional services costs raised operating expenses, partly offsetting gains

Company press release: ID:nGNX34mzlB

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
Beat
$10.71
$10.52 (3 Analysts)
Q1 EPS
$12.40
Q1 Adjusted Net Income
Beat
$117.30 mln
$111.70 mln (2 Analysts)
Q1 Net Income
$135.80 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 no "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 $455.00, about 10.3% below its May 4 closing price of $507.00

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)