CACC Stock Jumps 5.8% as Q4 Earnings Beat on Higher Finance Charges

Shares of Credit Acceptance Corporation CACC gained 5.8% in after-hours trading in response to better-than-expected fourth-quarter 2024 results. Earnings per share of $12.26 surpassed the Zacks Consensus Estimate of $6.82 by a considerable margin. Also, the bottom line surged 68.2% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. Results benefited from higher finance charges, growth in net loan receivables and decline in provisions. However, higher operating expenses posed a headwind.Excluding the non-recurring items, adjusted net income was $126 million or $10.17 per share compared with $129.1 million or $10.06 per share in the prior-year quarter.For 2024, earnings of $19.88 per share outpaced the consensus estimate of $14.47 but declined 9.6% year over year. Adjusted net income was $478.9 million or $38.41 per share, down from $535.6 million or $41.17 per share in 2023.CACC’s GAAP Revenues Increase, Operating Expenses RiseTotal GAAP revenues for the reported quarter were $565.9 million, up 15.1% year over year. Increased finance charges and premiums earned supported revenue growth. The top line beat the Zacks Consensus Estimate of $562.4 million.For 2024, total GAAP revenues grew 13.7% from the prior year to $2.16 billion. The top line met the consensus estimate.Provision for credit losses was $123.4 million, down 24.6%. Operating expenses of $121.6 million increased 6.4%. As of Dec. 31, 2024, net loans receivables were $7.85 billion, up 12.9% from December 2023-end.Total assets were $8.85 billion as of the same date, up from $7.61 billion as of Dec 31, 2023. Total shareholders’ equity was $1.75 billion, relatively stable.Our Take on Credit AcceptanceMounting expenses are expected to hurt Credit Acceptance’s bottom-line growth to an extent in the near term. Moreover, poor asset quality might hamper financials. Nevertheless, the company has been well-poised for revenue growth, given the gradual increase in demand for consumer loans. Credit Acceptance Corporation Price, Consensus and EPS Surprise Credit Acceptance Corporation price-consensus-eps-surprise-chart | Credit Acceptance Corporation QuoteCurrently, Credit Acceptance carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of CACC’s PeersCapital One’s COF fourth-quarter 2024 adjusted earnings of $3.09 per share handily surpassed the Zacks Consensus Estimate of $2.66. The bottom line also compared favorably with $2.24 in the prior-year quarter.Results gained from higher net interest income and non-interest income and rise in loans and deposits. Also, provisions declined during the quarter. However, the increase in expenses was the undermining factor for COF.Ally Financial’s ALLY fourth-quarter 2024 adjusted earnings of 78 cents per share handily surpassed the Zacks Consensus Estimate of 59 cents. Also, the bottom line reflected a jump of 95% from the year-ago quarter.ALLY’s results benefited from a rise in net finance revenues. Further, lower expenses and a decline in credit costs provided support. However, lower other revenues, and a decline in net finance receivables and loans and deposits were the undermining factors.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Capital One Financial Corporation (COF): Free Stock Analysis Report Credit Acceptance Corporation (CACC): Free Stock Analysis Report Ally Financial Inc. (ALLY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks