Credit Acceptance Q4 adjusted EPS beats analyst expectations

Credit Acceptance

29/01/2026 21:10

Overview

Auto finance company's Q4 adjusted EPS beat analyst expectations

Adjusted net income for Q4 exceeded analyst estimates

Company repurchased $191.4 mln in shares, about 3.8% of shares outstanding

Outlook

Company plans broader deployment of AI-powered call-center agents in 2026

Credit Acceptance expects to expand dealer use of new contract origination experience in Q1 2026

Company sees continued progress in product initiatives to improve dealer and consumer relationships

Result Drivers

LOAN VOLUME DECLINE - Co reported a decline in loan volumes and performance, but highlighted resilience of its business model

PRODUCT INITIATIVES - Co made progress on product initiatives to enhance dealer and consumer experiences, including digital credit applications and AI-powered call-center agents

COLLECTION RATE DECLINE - Co experienced a moderate decline in forecasted collection rates, impacting forecasted net cash flows by $34.2 mln

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Adjusted EPS
Beat
$11.35
$10.01 (4 Analysts)
Q4 EPS
$10.99
Q4 Adjusted Net Income
Beat
$126 mln
$114.69 mln (4 Analysts)
Q4 Net Income
$122 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "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 $466.00, about 7.5% above its January 28 closing price of $433.43

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNXbgHWcX

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(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.)