Credit Acceptance (CACC) Posts Q1 Loss of $4.61/Share, non-GAAP EPS of $9.66

Credit Acceptance (NASDAQ: CACC) reported Q1 non-GAAP EPS of $9.66, which may not compare to the analyst estimate of $3.68. The company reported consolidated net loss of $83.8 million, or $4.61 per diluted share, for the three months ended March 31, 2020 compared to consolidated net income of $164.4 million, or $8.65 per diluted share, for the same period in 2019.

COVID-19 Pandemic

In March 2020, COVID-19 began to spread rapidly across the United States. In an effort to slow the spread of the virus, authorities implemented various measures, including travel bans, stay-at-home orders and shutdowns of non-essential businesses. These measures have caused a significant decline in economic activity and a dramatic increase in the number of individuals who are no longer employed. As detailed below, starting in mid-March, we experienced a substantial reduction in demand for our product and a significant decline in cash flows from our loan portfolio that lasted through mid-April, after which collections and new loan volumes improved significantly. As the virus is not yet contained, the ultimate impact of the pandemic on our business is not yet known. The impact will depend on future developments, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the disease or mitigate its impact, and the duration, timing and severity of the impact on consumer behavior and economic activity.

For earnings history and earnings-related data on Credit Acceptance (CACC) click here.

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