CACC - Credit Acceptance stock climbs 18% after Q1 results surpass consensus
Credit Acceptance Corp. (NASDAQ:CACC) stock is jumping 18% in Tuesday afternoon trading after its Q1 results, posted after Monday's close, beat the average analyst estimates. Q1 adjusted EPS of $13.76 topped the $11.97 consensus and rose from $9.64 in the year-ago quarter. Credit Suisse analyst Moshe Orenbuch attributes the beat to a lower-than-expected provision for credit losses. Q1 provision for credit losses of $18.0M in Q1 2022 fell from $20.0M in Q4 2021 and increased $16.4M in Q1 2021. The auto lender also said it made adjustments that lifted its forecasted net cash flows and decreased its provision for credit losses. Starting with Q1, the auto lender removed its COVID forecast adjustment after determining it had sufficient consumer loan performance experience since the lapse of the federal government's pandemic relief programs to refine its estimate of future net cash flows. Between removing that adjustment and implementing an enhanced forecasting methodology, its forecasted
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Credit Acceptance stock climbs 18% after Q1 results surpass consensus