CACC - Credit Acceptance Q4 results top consensus as loan assignment volume grows

Credit Acceptance Corp. ( NASDAQ: CACC ) posted better-than-expected Q4 earnings and revenue as consumer loan assignment volume increased 25.6% on a unit basis and 26.2% in dollar volume from Q4 2021.

However, a decrease in forecasted collection rates for consumer loans assigned in 2021 and 2022, reduced forecasted net cash flows from CACC's loan portfolio by $41.1M, or 0.5%.

Q4 adjusted EPS of $11.74 per share, vs. $7.16 consensus, $13.36 in Q3 2022 and $14.26 in Q4 2021.

Q4 total revenue of $459.0M vs. $452.9M average analyst estimate, $460.3M in the prior quarter and $463.2M in the year-ago quarter.

Q4 provision for credit losses was $130.3M vs. $180.3M in the prior quarter and $25.9M in the year-ago period.

Total costs and expenses fell to $296.0M from $338.2M in Q3 and increased from $178.5M in Q4 2021.

Q4 adjusted return on capital of 12.0% vs. 13.1% in Q3 and 14.6% in Q4 2021.

Cost of capital of 6.6% increased from 5.8% in Q3 and from 5.1% in Q4 2021.

During the quarter, Credit Acceptance ( CACC ) bought back about 208,000 of its shares, representing 1.6% of its shares outstanding at the beginning of the quarter.

Net loans receivable were $6.30B at Dec. 31, 2022 vs. $6.34B at Dec. 31, 2021.

Conference call at 5:00 PM ET.

Earlier, Credit Acceptance non-GAAP EPS of $11.74 beats by $1.68, revenue of $459M beats by $6.11M.

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