Overview

* Credit Acceptance Q2 2025 adjusted EPS misses analyst expectations, per LSEG data

* The finance company's adjusted net income declines, missing analyst estimates, per LSEG data

* Co repurchased 530,000 shares, 4.5% of shares outstanding

Result Drivers

* COLLECTION RATE DECLINE - Forecasted collection rates decreased, impacting net cash flows by $55.8 mln

* LOAN PORTFOLIO GROWTH - Average balance of loan portfolio increased 6.8% from Q2 2024 to $8 bln

* CONSUMER LOAN VOLUME DROP - Consumer Loan assignment unit and dollar volumes declined 14.6% and 18.8% from Q2 2024

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $8.56 $9.68 (4

Adjusted Analysts

EPS )

Q2 EPS $7.42

Q2 Miss $100.80 $119.40

Adjusted mln mln (3

Net Analysts

Income )

Q2 Net $87.40

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 1 "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 ( CACC ) is $493.00, about 2.3% below its July 30 closing price of $504.55

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

Press Release:

(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.)