Credit Acceptance Q3 adj EPS beats estimates, helped by fall in provision for credit losses

Credit Acceptance

30/10/2025 20:24

Overview

Credit Acceptance Q3 adjusted EPS of $10.28 beats analyst expectations

Adjusted net income for Q3 was $117.9 mln, surpassing estimates

Company repurchased $107.4 mln in shares, about 2% of outstanding shares

Outlook

Company expects system modernization to improve loan origination speed

Credit Acceptance anticipates acceptable returns despite loan performance challenges

Company sees improvement in product initiatives enhancing dealer and consumer value

Result Drivers

LOAN VOLUME DECLINE - Co reports a 16.5% decline in Consumer Loan assignment unit volume, attributed to fewer active dealers and lower average volume per dealer

SYSTEM MODERNIZATION - Co highlights improvements from modernizing loan origination system, enhancing delivery speed and dealer experience

PROVISION FOR CREDIT LOSSES - Decrease in provision for credit losses contributed to higher net income, despite challenging loan performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
$10.28
$9.52 (4 Analysts)
Q3 EPS
$9.43
Q3 Adjusted Net Income
Beat
$117.90 mln
$109 mln (3 Analysts)
Q3 Net Income
$108.20 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 $462.50, about 0.7% above its October 29 closing price of $459.29

Press Release: ID:nGNX8lCgLv

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