(RTTNews) - Wednesday, auto finance company Americredit Corp. (ACF: News ) reported a swing to profit for its first quarter, benefiting from lower costs and expenses, even as revenue dropped significantly due to seasonal factors.

The Fort Worth, Texas-based company reported net income of $26 million or $0.19 per share for its first quarter, compared to net loss of $5 million or $0.05 per share for the same period a year earlier.

On average, eight analysts polled by Thomson Reuters estimated earnings of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.

Due to the adoption of a new accounting standard that changed the accounting for convertible bonds, the company had revised its earlier reported net loss of $2 million or $0.01 per share for the first quarter of 2008.

Revenue for the first quarter decreased to $413.28 million from $566.04 million in the year-earlier period. Analysts expected revenue of $375.73 million for the quarter.

Finance charge income decreased to $389.80 million from $533.97 million a year ago. Other income decreased to $23.49 million from $31.08 million last year.

Cost and expenses decreased to $367.03 million from $571.24 million in the comparable quarter of 2008. The decrease was mainly due to lower operating expenses, which eased to $68.86 million from $84.26 million; lower provision for loan losses, which was reduced to $157.95 million from $274.87 million; and lesser interest expense, which fell to $130.15 million from $200.65 million.
Originations for the quarter declined significantly to $229 million from $579 million in the year-ago quarter. Finance receivables were $10.0 billion at September 30, 2009, compared to $14.1 billion at September 30, 2008.

Annualized net charge-offs totaled 8.4% of average finance receivables for the quarter, compared to 7.3% last year.

Allowance for loan losses, as a percentage of finance receivables, was 8.2% at September 30, 2009, compared to 6.8% at September 30, 2008.

Dan Berce, chief executive officer of Americredit, said, "Credit metrics reflected typical seasonal decline and the impact of a decreasing portfolio balance. However, we are seeing a moderation in the rate of deterioration in our credit performance."

ACF closed Wednesday's regular trading at $16.63, up $0.31 or 1.90%, on a volume of 1.33 million shares on the New York Stock Exchange.

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by RTT Staff Writer

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