NASDAQ$CACC

Credit Acceptance · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Credit Acceptance's Q4 2020 earnings were announced, revealing an increase in net income and adjusted net income per diluted share compared to the same period in 2019.

Credit Acceptance Corporation reported consolidated net income of $166.3 million, or $9.43 per diluted share, for the three months ended December 31, 2020, compared to $161.9 million, or $8.60 per diluted share, for the same period in 2019. Adjusted net income, a non-GAAP financial measure, for the three months ended December 31, 2020 was $189.5 million, or $10.75 per diluted share, compared to $173.5 million, or $9.22 per diluted share, for the same period in 2019. Consumer Loan unit volume decreased by 18.1% during the fourth quarter of 2020.

  • Net income increased to $166.3 million, or $9.43 per diluted share, compared to $161.9 million, or $8.60 per diluted share, for the same period in 2019.
  • Adjusted net income increased to $189.5 million, or $10.75 per diluted share, compared to $173.5 million, or $9.22 per diluted share, for the same period in 2019.
  • Consumer Loan unit volume declined 18.1% and dollar volume declined 10.8% during the fourth quarter of 2020.
  • Active dealers decreased by 8.6% while average unit volume per active dealer declined 9.5%.

Headline financials

Total Revenue

$447M

Previous: $386M+15.9%
EPS (adj)

$10.75

Previous: $9.22+16.6%
Consumer Loan unit volume

63.9K

Previous: 78.0K-18.1%
Active dealers

8.5K

Previous: 9.3K-8.6%
Average volume per active dealer

7.6

Previous: 8.4-9.5%
New active dealers

608

No prior period
Average volume per new active dealer

3.5

No prior period
Attrition

-0.2%

No prior period
Capital Expenditures

$800K

Previous: $3.2M-75.0%
Free Cash Flow

$201M

Previous: $201M+0.1%
Net Income

$166M

Previous: $162M+2.7%
Operating Income

$216M

Previous: $215M+0.4%
Gross Profit

$333M

Previous: $262M+27.2%
Cash & Equivalents

$16M

Previous: $187M-91.5%
Total Assets

$7.49B

Previous: $7.42B+0.9%
Stock-Based Comp

$1.5M

Previous: $1.9M-21.1%

Revenue & EPS history

Credit Acceptance · Revenue · Quarterly

$447M

Q4 2020+15.9%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Credit Acceptance · $447M total across 3 segments · Q4 2020

  • Finance charges
    $418M+17.4%
  • Premiums earned
    $15.1M+18.0%
  • Other income
    $14.4M-15.3%

Forward guidance

The company did not provide forward guidance in the 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 Q4 2020

Historical avgQ4 2020

-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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