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Encore Capital Group Inc (ECPG)
NASDAQ:ECPG
Holding ECPG?
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Earnings Data
Report Date
Feb 19, 2025TBA Not Confirmed
Period Ending
2024 (Q4)Consensus EPS Forecast
$1.43Last Year’s EPS
-$11.4Same Quarter Last Year
Strong Buy
Based on 3 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Nov 06, 2024
|% Change Since: -5.91%
|Next Earnings Date:Feb 19, 2025
Earnings Call Sentiment|Positive
The earnings call highlighted strong financial performance, driven by record portfolio supply and increased collections in the U.S., with raised guidance for the year. While there were challenges in Europe and a notable exit in Spain, the overall outlook remains positive, supported by a robust balance sheet.Company Guidance
In the third quarter of 2024, Encore Capital Group reported robust performance driven by favorable market conditions, particularly in the U.S. market through Midland Credit Management (MCM). Key metrics highlighted include a 28% increase in portfolio purchases compared to the previous year, with collections rising by 22% to $402 million, marking MCM's highest collection quarter since 2021. In Europe, while portfolio purchasing showed signs of improvement, the company remained selective due to competitive pricing not fully reflecting higher interest rates, resulting in Cabot collections increasing by 10% to $148 million. Globally, Encore's portfolio purchases grew by 23% to $282 million, and collections rose by 18% to $550 million. The company plans to raise its global portfolio purchasing guidance to approximately $1.25 billion for the year, driven by continued strong U.S. purchasing and a significant spot purchase in Europe. Operating expenses increased by 11%, with a cash efficiency margin improvement from 51% to 53.6%. Encore's GAAP net income rose by 58% to $31 million, with an EPS of $1.26, up 59% year-over-year. The company emphasized its strategy to prioritize portfolio purchases with strong returns while considering stock repurchases as leverage approaches the midpoint of its target range.Record Portfolio Supply in the U.S.
MCM's portfolio purchases increased by 28% compared to the previous year, with collections up 22%, reaching the highest level since 2021.
Strong Financial Performance
GAAP net income of $31 million and GAAP EPS of $1.26 showed increases of 58% and 59%, respectively, compared to the third quarter of 2023.
Increased Global Portfolio Purchases
Encore's global portfolio purchases increased by 23% to $282 million, driven by strong U.S. deployments.
Improved Cash Efficiency Margin
Cash efficiency margin increased from 51% to 53.6% in the current quarter.
Robust Balance Sheet
Leverage ratio decreased to 2.7x, down from 2.9x at the end of 2023, indicating a strong balance sheet.
Raised Guidance for 2024
Encore raised its global portfolio purchasing guidance for the year to approximately $1.25 billion, and collections growth is expected to be over 15%.
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ECPG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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ECPG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Nov 06, 2024 | $49.77 | $49.80 | +0.06% |
| Aug 07, 2024 | $44.81 | $49.93 | +11.43% |
| May 08, 2024 | $43.24 | $48.10 | +11.24% |
| Feb 21, 2024 | $53.42 | $48.18 | -9.81% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Encore Capital Group Inc (ECPG) report earnings?
Encore Capital Group Inc (ECPG) is schdueled to report earning on Feb 19, 2025, TBA Not Confirmed.
What is Encore Capital Group Inc (ECPG) earnings time?
Encore Capital Group Inc (ECPG) earnings time is at Feb 19, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ECPG EPS forecast?
ECPG EPS forecast for the fiscal quarter 2024 (Q4) is $1.43.
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