Debt recovery company Encore Capital Group (NASDAQ: ECPG) will be announcing earnings results this Wednesday after market close. Here’s what to expect.
Encore Capital Group beat analysts’ revenue expectations by 15.3% last quarter, reporting revenues of $442.1 million, up 24.4% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
Is Encore Capital Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Encore Capital Group’s revenue to grow 12.1% year on year to $411.3 million, slowing from the 18.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.59 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Encore Capital Group has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Encore Capital Group’s peers in the specialty finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. PROG’s revenues decreased 1.8% year on year, beating analysts’ expectations by 1.5%, and Capital Southwest reported revenues up 16.9%, topping estimates by 2.2%. PROG traded down 5% following the results.
Read our full analysis of PROG’s results here and Capital Southwest’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the specialty finance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.3% on average over the last month. Encore Capital Group is up 8.3% during the same time and is heading into earnings with an average analyst price target of $58 (compared to the current share price of $43.99).
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