UPDATE 2-AmeriCredit Q2 profit beats Street view
* Q2 EPS $0.33 vs est $0.08
* Q2 provision for loan losses down 63 pct
* Loan originations up 18 pct
* Sees modest origination growth for several quarters
(Adds conference call details)
Jan 27 (Reuters) - Subprime auto lender AmeriCredit Corp ACF.N posted a second-quarter profit that handily beat analysts' estimates, helped mainly by lower provision for loan losses and interest expense.
Loan originations rose to $379 million in the quarter from $321 million a year earlier, the company said in a statement.
"We expect a modest growth in loan originations for the next several quarters," Chief Executive Dan Berce said on a conference call.
AmeriCredit also said it is in talks with lenders for the renewal of its $1 billion revolving warehouse facility that is expiring in March.
"We expect the renewal process to ultimately result in a increased facility size, lower cost of funds and similar advance rate," Chief Financial Officer Chris Choate said on the call.
For the quarter ended Dec. 31, the company posted net income of $46.0 million, or 33 cents a share, compared with a loss of $35.0 million, or 29 cents a share, a year ago.
Analysts on average expected a profit of 8 cents a share, before items, according to Thomson Reuters I/B/E/S. Provision for loan losses fell 63 percent to $106.2 million. Interest expense dropped to $121.8 million from $224.8 million.
The company said it expects the year-over-year improvement in credit performance to be sustainable.
The company had total available liquidity of $750 million at Dec. 31.
Shares of AmeriCredit closed at $21.30 Wednesday on the New York Stock Exchange. (Reporting by Supantha Mukherjee in Bangalore; Editing by Anne Pallivathuckal)
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