NASDAQ$CACC

Credit Acceptance · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Credit Acceptance's financial performance decreased due to a decline in forecasted collection rates and an increase in interest and operating expenses.

Credit Acceptance Corporation reported a decrease in consolidated net income for the three months ended September 30, 2023, compared to the same period in 2022. GAAP net income was $70.8 million, or $5.43 per diluted share, compared to $86.8 million, or $6.49 per diluted share, for the same period in 2022. Adjusted net income was $139.5 million, or $10.70 per diluted share, compared to $178.5 million, or $13.36 per diluted share, for the same period in 2022.

  • Consumer Loan assignment volume increased, with unit and dollar volumes growing by 13.0% and 10.5%, respectively, compared to Q3 2022.
  • The initial spread on Consumer Loan assignments increased to 21.4% in Q3 2023 from 20.2% in Q3 2022.
  • Forecasted collection rates decreased, impacting forecasted net cash flows from the loan portfolio by $69.4 million, a 0.7% decrease.
  • GAAP net income decreased due to increased interest and operating expenses, and a decrease in other income.

Headline financials

Total Revenue

$479M

Previous: $460M+4.0%
EPS (adj)

$10.70

Previous: $13.36-19.9%
Consumer Loan unit volume

81.3K

Previous: 71.9K+13.0%
Active dealers

9.8K

Previous: 8.5K+14.9%
Average volume per active dealer

8.3

Previous: 8.4-1.2%
Capital Expenditures

-$2.3M

Previous: -$1.9M-21.1%
Free Cash Flow

$68.5M

Previous: $84.9M-19.3%
Net Income

$70.8M

Previous: $86.8M-18.4%
Operating Income

$352M

Previous: $411M-14.4%
Gross Profit

$462M

Previous: $447M+3.3%
Cash & Equivalents

$3.1M

Previous: $10.7M-71.0%
Total Assets

$7.4B

Previous: $6.89B+7.3%
Stock-Based Comp

$9.3M

Previous: $8.7M+6.9%

Revenue & EPS history

Credit Acceptance · Revenue · Quarterly

$479M

Q3 2023+4%vs Q3 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Credit Acceptance · $479M total across 3 segments · Q3 2023

  • Finance charges
    $442M+5.0%
  • Premiums earned
    $20.8M+26.8%
  • Other income
    $16.1M-30.9%

Forward guidance

Credit Acceptance did not provide any forward guidance in the Q3 2023 earnings report.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.3%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.6%

Avg return

30 days after

40%

26 / 65 earnings

Positive

+21.3%

Q1 2022

Best reaction

-15.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-0.7%+3.5%
Q4 2025+10.6%+12.4%+4.9%
Q3 2025+0.9%-0.2%+2.1%
Q1 2025-4.0%+2.0%-2.1%
Q4 2024-1.2%+1.0%-4.2%
Q3 2024-6.1%-6.4%+10.0%
Q2 2024-15.8%-18.4%-19.7%
Q1 2024-6.9%-4.3%-7.9%
Q4 2023+4.9%+1.9%-0.4%
Q3 2023-0.5%+9.6%+11.4%
Q2 2023-13.1%-10.5%-9.9%
Q1 2023-12.1%-8.0%-9.0%
Q4 2022+17.2%+17.6%+0.0%
Q3 2022-6.1%-4.9%+1.9%
Q2 2022-8.2%-5.5%-7.6%
Q1 2022+21.3%+17.0%+13.9%
Q4 2021-0.9%-1.9%+4.5%
Q3 2021+12.1%+14.7%+4.5%
Q2 2021+2.6%+14.5%+22.5%
Q1 2021+0.4%+6.3%+13.8%
Q4 2020-14.1%-10.1%-2.8%
Q3 2020-4.9%-3.7%-4.4%
Q2 2020-2.4%-0.9%-4.2%
Q1 2020+4.1%+11.5%+16.5%
Q4 2019-7.1%-6.3%-12.6%
Q3 2019-6.0%-3.2%-1.7%
Q2 2019-2.1%-4.5%-5.9%
Q1 2019-1.0%-0.7%-6.9%
Q4 2018-2.6%+4.4%+9.3%
Q3 2018+8.4%+6.8%+3.9%
Q2 2018+13.7%+18.7%+20.0%
Q1 2018-2.1%-0.6%+8.1%
Q4 2017-11.5%-14.4%-14.6%
Q3 2017-4.1%-6.1%+1.7%
Q2 2017+9.1%+9.1%+8.9%
Q1 2017+7.9%+6.1%+5.8%
Q4 2016-5.5%-1.7%-1.4%
Q3 2016-11.4%-9.2%+3.8%
Q2 2016+5.0%+6.1%+8.0%
Q1 2016-5.8%
Q4 2015-3.4%
Q3 2015-13.1%
Q2 2015+9.8%
Q1 2015+9.9%
Q4 2014+13.4%
Q3 2014+6.3%
Q2 2014-3.6%
Q1 2014-6.9%
Q4 2013+8.1%
Q3 2013-0.7%
Q2 2013+0.4%
Q1 2013-2.2%
Q4 2009-7.5%
Q4 2012+3.5%
Q3 2012-0.1%
Q2 2012+4.2%
Q1 2011-7.3%
Q1 2012-0.5%
Q4 2011+0.0%
Q3 2011+5.6%
Q3 2010+5.6%
Q2 2011-0.7%
Q4 2010-0.7%
Q2 2010-0.7%
Q1 2010-0.1%

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