Automobile finance company
said Monday that for its fourth quarter ended June 30 earnings rose 2.5% from the year-ago period, helped by stronger loan origination and decreased charge-offs.
The company earned $78.8 million, or 55 cents a share, in the quarter, compared with $76.9 million, or 48 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of $76.8 million, or 55 cents a share.
Fourth-quarter revenue rose 23.7% from a year ago to $487.8 million as against analysts' expectation of $481.8 million.
The Fort Worth, Texas-based company expects to earn $305 million, or $2.15 a share, to $335 million, or $2.35 a share in the year 2007, including the results of Bay View Acceptance, which was acquired by the company on May 1. Analysts expect earnings of $334.4 million, or $2.45 a share for the year 2007.
"AmeriCredit experienced a strong finish to fiscal year 2006 as loan originations increased and charge-offs declined this quarter," the company said. "We continued executing our growth strategies, and we are still benefiting from a favorable economic environment."
Loan origination for the quarter rose 19.4% from a year ago to $1.73 billion.
Automobile loan purchases for the quarter rose to $1.73 billion compared with $1.45 billion, a year ago.
Shares fell 77 cents to $24.04.
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