Brief: Encore Capital Q2 EPS USD 2.49

Encore Capital

06/08/2025 21:05

Overview

Encore Capital Q2 revenue rises 24%, beating analyst expectations, per LSEG data

Net income for Q2 jumps 82%, exceeding analyst estimates, per LSEG data

Company raises full-year collections guidance, reflecting confidence in growth

Outlook

Encore raises full-year collections guidance to $2.5 bln, up 15.5% year-over-year

Company maintains guidance for global portfolio purchasing to exceed $1.35 bln

Result Drivers

U.S. MARKET CONDITIONS - Favorable purchasing conditions in the U.S. drove record portfolio purchases and collections

MCM PERFORMANCE - MCM business in the U.S. achieved record portfolio purchases and collections, attributed to superior execution

EUROPEAN GROWTH - Cabot business in Europe saw a 10% increase in collections, aligning with historical trends

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$442.12 mln
$383.40 mln (5 Analysts)
Q2 EPS
$2.49
Q2 Net Income
Beat
$58.72 mln
$34.20 mln (5 Analysts)
Q2 Operating Expenses
$291.39 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the corporate financial services peer group is "buy"

Wall Street's median 12-month price target for Encore Capital Group Inc is $56.50, about 35.2% above its August 5 closing price of $36.64

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nGNX2pnWYs

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)