Credit Acceptance Q2 adjusted EPS misses estimates

Credit Acceptance

31/07/2025 21:13

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

(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.)