Encore Capital Group Earnings Calls

Q1 2025 Beat
$1.93 (55.65%)
Release date May 07, 2025
EPS estimate $1.24
EPS actual $1.93
EPS Surprise 55.65%
Revenue estimate 374.487M
Revenue actual 392.775M
Revenue Surprise 4.88%
Q4 2024 Missed
$1.50 (-3.23%)
Release date Feb 26, 2025
EPS estimate $1.55
EPS actual $1.50
EPS Surprise -3.23%
Revenue estimate 373.397M
Revenue actual 265.619M
Revenue Surprise -28.86%
Q3 2024 Missed
$1.26 (-14.86%)
Release date Nov 06, 2024
EPS estimate $1.48
EPS actual $1.26
EPS Surprise -14.86%
Revenue estimate 373.397M
Revenue actual 367.071M
Revenue Surprise -1.69%
Q2 2024 Beat
$1.34 (8.06%)
Release date Aug 07, 2024
EPS estimate $1.24
EPS actual $1.34
EPS Surprise 8.06%
Revenue estimate 346.06M
Revenue actual 352.149M
Revenue Surprise 1.76%

Last 4 Quarters for Encore Capital Group

Below you can see how ECPG performed 4 days prior and 4 days after releasing the earnings report. Also, you can see the pre-estimates and the actual earnings. This information can give you a slight idea of what you might expect for the next quarter's release.

Q2 2024 Beat
Release date Aug 07, 2024
Fiscal end date Jun 30, 2024
Price on release $44.81
EPS estimate $1.24
EPS actual $1.34
EPS surprise 8.06%
Date Price
Aug 01, 2024 $48.31
Aug 02, 2024 $47.24
Aug 05, 2024 $46.13
Aug 06, 2024 $45.77
Aug 07, 2024 $44.81
Aug 08, 2024 $49.93
Aug 09, 2024 $48.73
Aug 12, 2024 $47.37
Aug 13, 2024 $47.58
4 days before -7.24%
4 days after 6.18%
On release day 11.43%
Change in period -1.51%
Q3 2024 Missed
Release date Nov 06, 2024
Fiscal end date Sep 30, 2024
Price on release $49.77
EPS estimate $1.48
EPS actual $1.26
EPS surprise -14.86%
Date Price
Oct 31, 2024 $45.68
Nov 01, 2024 $45.79
Nov 04, 2024 $45.34
Nov 05, 2024 $47.48
Nov 06, 2024 $49.77
Nov 07, 2024 $49.80
Nov 08, 2024 $49.97
Nov 11, 2024 $50.01
Nov 12, 2024 $48.80
4 days before 8.95%
4 days after -1.95%
On release day 0.0603%
Change in period 6.83%
Q4 2024 Missed
Release date Feb 26, 2025
Fiscal end date Dec 31, 2024
Price on release $49.86
EPS estimate $1.55
EPS actual $1.50
EPS surprise -3.23%
Date Price
Feb 20, 2025 $50.01
Feb 21, 2025 $49.72
Feb 24, 2025 $48.54
Feb 25, 2025 $49.89
Feb 26, 2025 $49.86
Feb 27, 2025 $38.95
Feb 28, 2025 $37.72
Mar 03, 2025 $35.45
Mar 04, 2025 $34.48
4 days before -0.300%
4 days after -30.85%
On release day -21.88%
Change in period -31.05%
Q1 2025 Beat
Release date May 07, 2025
Fiscal end date Mar 31, 2025
Price on release $32.92
EPS estimate $1.24
EPS actual $1.93
EPS surprise 55.65%
Date Price
May 01, 2025 $34.42
May 02, 2025 $35.65
May 05, 2025 $35.50
May 06, 2025 $32.95
May 07, 2025 $32.92
May 08, 2025 $40.77
May 09, 2025 $40.51
May 12, 2025 $40.50
May 13, 2025 $40.32
4 days before -4.36%
4 days after 22.48%
On release day 23.85%
Change in period 17.14%

Encore Capital Group Earnings Call Transcript Summary of Q1 2025

Summary of Key Points from Encore Capital Group's Q1 2025 Earnings Call for Investors:

  • Strong Financial Performance:
    • Earnings: Q1 earnings per share (EPS) reached $1.93, a 103% increase compared to Q1 2024.
    • Collections and Purchases: Collections amounted to $605 million (up 18% YoY), while portfolio purchases were $368 million (up 24% YoY).
  • Leverage and Operations:
    • Leverage improved to 2.6x, down from 2.8x a year ago.
    • Operating expenses rose only 8% to $263 million, showcasing operating leverage with a cash efficiency margin increase to 58.3%.
  • Business Segment Highlights:
    • U.S. Market:
      • Midland Credit Management (MCM) reported record portfolio purchases of $316 million (up 34% YoY) and collections of $454 million (up 23% YoY).
      • The U.S. market remains favorable due to elevated card charge-off rates and strong supply of portfolios.
    • European Market:
      • Cabot Credit Management had portfolio purchases of $51 million, with collections increasing to $150 million (up 7% YoY).
  • Market Dynamics:
    • Continued favorable conditions in the U.S. market due to a robust supply of purchasing opportunities driven by high consumer credit card delinquencies.
    • The company is maintaining a disciplined approach in Europe, with purchases expected to remain stable.
  • Future Guidance:
    • Encore projects global portfolio purchases for 2025 to exceed $1.35 billion, coupled with a growth forecast for total collections of 11% to $2.4 billion.
    • Anticipated interest expense for the year is around $285 million.
  • Share Buybacks:
    • The company resumed share repurchases, purchasing $10 million of shares in Q1 and a total of $16 million year-to-date. The future pace of buybacks will depend on market conditions.
  • Cash Overs and Future Recoveries:
    • Despite reporting $21.5 million in changes in recoveries, indicating strong cash collection performance above expectations, there were negative revisions to future expected recoveries due to company forecasts and judgment calls.
  • Conclusion:
    • Overall strong start to 2025 with a positive outlook for the rest of the year. Management expressed confidence in hitting their financial targets and maintaining operational efficiency.

Key Takeaway for Investors:

Encore Capital Group demonstrates robust operational performance with strong financial metrics and favorable market conditions, particularly in the U.S. This positions the company well for potential growth, making it an interesting consideration for investors looking at the debt purchasing market. The emphasis on maintaining operational efficiency and the resumption of share buybacks also indicate a focus on enhancing shareholder value.

Encore Capital Group Earnings History

Earnings Calendar

FAQ

When is the earnings report for ECPG?
Encore Capital Group Inc (ECPG) has scheduled its earnings report for Aug 06, 2025 after the markets close.

What is the ECPG price-to-earnings (P/E) ratio?
ECPG P/E ratio as of May 16, 2025 (TTM) is -8.44.

What is the ECPG EPS forecast?
The forecasted EPS (Earnings Per Share) for Encore Capital Group Inc (ECPG) for the first fiscal quarter 2025 is $1.44.

What are Encore Capital Group Inc's retained earnings?
On its balance sheet, Encore Capital Group Inc reported retained earnings of $392.78 million for the latest quarter ending Mar 31, 2025.

What Is an Earnings Report?
An earnings report is usually issued quarterly (Q1, Q2, Q3 & Q4) by public companies to report their performance. Earnings reports typically include net income, earnings per share, earnings from continuing operations, and net sales. Looking at the earnings report investors can start gauge the financial health of the company and make even better decisions whether to buy, sell, or stay in the company. Fundamental analysts and value investors will typically hunt for stocks that continue to show good financial ratios and use a decline as an exit point. One of the most anticipated numbers for analysis is earnings per share because it indicates how much the company earned for its shareholders. The report will also indicate a possible dividend.

Earnings Report Content
Earnings reports generally provide an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. These figures are typically measured against previous quarters/years. Furthermore, the earnings report usually includes a summary and analysis from the CEO or company spokesman, alongside a more general view of the financials and future forecast.

What To Know About Earnings Reports?
Announcement of earnings for a stock, particularly for well followed large-capitalization stocks, can move the market. Stock prices can fluctuate wildly on days when the quarterly earnings report is released. Despite good reports, stocks may very well fall if the investors were expecting more or they believe the next quarter will not be as good. Investors always try to be ahead of the market and future earnings/losses are often discounted into the current price of the stock. It is natural for stocks to start to move in either direction a few days before the release of an earnings report.
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ABOUT ENCORE CAPITAL GROUP INC
Encore Capital Group
Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at deep discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery. It is also involved in the provision of early stage collection,...
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