AmeriCredit earnings report beats expectations

Thu. October 22, 2009; Posted: 01:51 AM

Oct 22, 2009 (Fort Worth Star-Telegram - McClatchy-Tribune Information Services via COMTEX) -- ACF | Quote | Chart | News | PowerRating -- Shares in AmeriCredit rose just shy of 2 percent Wednesday, a down day for Wall Street, after the Fort Worth-based auto lender posted quarterly financial results that beat analysts' estimates.

But loan originations dropped 60 percent in the quarter ended Sept. 30, reflecting the slowdown in the auto market, and AmeriCredit's percentage of car loans gone bad rose slightly.

The finance company reported net income of $26 million, or 19 cents per share, for its fiscal first quarter, up from a 5-cent loss for the same period last year. Analysts had predicted net income of 6 cents a share.

"We had a solid September quarter," CEO Dan Berce said in a statement. Despite a smaller loan portfolio, "we are seeing a moderation in the rate of deterioration in our credit performance."

"With ample liquidity, sufficient warehouse capacity and an improving capital markets environment, we are well-positioned to rebuild loan origination levels," Berce added.

AmeriCredit revised its per-share loss from the year-ago quarter, from 1 cent to 5 cents, attributing the change to new accounting standards.

Originations amounted to $229 million, down from $579 million a year earlier. AmeriCredit's loan portfolio totaled $10 billion as of Sept. 30, a drop from $14.1 billion in 2008.

Meanwhile, bad loans written off on an annualized basis totaled 8.4 percent, up from 7.3 percent a year earlier.

AmeriCredit shares (ticker: ACF | Quote | Chart | News | PowerRating) rose 31 cents, or 1.9 percent, to close at $16.63 on the New York Exchange. They climbed 33 cents more, or 1.98 percent, in after-hours trading.

BARRY SHLACHTER, 817-390-7718

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For full details on Americredit Corp (ACF) click here. Americredit Corp (ACF) has Short Term PowerRatings of 5. Details on Americredit Corp (ACF) Short Term PowerRatings is available at This Link.

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