Earnings Preview: AmeriCredit

AmeriCredit (ACF) is expected to report Q4 earnings after market close today (Aug. 6) with a conference call scheduled for 5:30 pm ET.

Guidance

Analysts are looking for EPS of 23c on revenue of $599.81M. The consensus range for EPS is 14c to 30c, while the consensus range for revenue is $599.60M to $600.10M, according to First Call.

Analyst Views

Friedman Billings last month predicted that AmeriCredit would have to cope with "increasing liquidity challenges." The firm reiterated its Underperform rating on the shares. The stock is trading only about 20% above its five-year low of $7.17, which it hit in mid-July. In June, Fitch Rating reaffirmed AmeriCredit's BB long-term issuer default rating with a negative outlook, but removed the ratings from negative watch. Fitch said it viewed positively the company's solid position in the auto finance market, its diverse credit portfolio, and its experienced management team.

In May, AmeriCredit registered to sell about 36M new shares of its stock. Investors will be trying to determine whether the company will be forced to raise additional capital.

Comments

[LMDICKE:]

No one here seems to realize that Leucadia National (LUK) is a big stockholder and is also standing behind ACF with capital and balance sheet. Remember the big financing facility with Deutsche Bank? That was Leucadia in action.

2008 Aug 06 04:45 PM