NASDAQ$CACC

Credit Acceptance · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Credit Acceptance reported a decrease in net income and adjusted net income compared to the same period last year, driven by increased provision for credit losses and interest expenses.

Credit Acceptance Corporation reported a decrease in GAAP net income to $93.6 million, or $7.29 per diluted share, for Q4 2023, compared to $127.3 million, or $9.58 per diluted share, for Q4 2022. Adjusted net income, a non-GAAP financial measure, was $129.1 million, or $10.06 per diluted share, compared to $156.1 million, or $11.74 per diluted share, for the same period in 2022. The results were impacted by a larger decrease in forecasted collection rates, a decrease in forecasted profitability for Consumer Loans assigned in 2020 through 2022, growth in Consumer Loan assignment volume, an increase in the initial spread on Consumer Loan assignments, and an increase in the average cost of debt.

  • GAAP net income decreased by 26.5% year-over-year to $93.6 million.
  • Adjusted net income decreased by 17.3% year-over-year to $129.1 million.
  • Consumer Loan unit and dollar volumes grew by 26.7% and 21.3%, respectively, compared to Q4 2022.
  • The initial spread on Consumer Loan assignments increased to 21.7% compared to 20.9% in Q4 2022.

Headline financials

Total Revenue

$492M

Previous: $459M+7.1%
EPS (adj)

$10.06

Previous: $11.74-14.3%
Consumer Loan unit volume

78.7K

Previous: 62.1K+26.7%
Active dealers

9.7K

Previous: 8.6K+12.6%
Average volume per active dealer

8.1

Previous: 7.2+12.5%
Capital Expenditures

$1.7M

Previous: $1.2M+41.7%
Net Income

$93.6M

Previous: $127M-26.5%
Operating Income

$116M

Previous: $163M-28.6%
Gross Profit

$330M

Previous: $306M+7.9%
Stock-Based Comp

$10.1M

Previous: $9.6M+5.2%

Revenue & EPS history

Credit Acceptance · Revenue · Quarterly

$492M

Q4 2023+7.1%vs Q4 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 specific 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 2023

Historical avgQ4 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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