Encore Capital Q3 revenue beats estimates on US market strength

Encore Capital

05/11/2025 21:53

Overview

Encore Capital Q3 revenue grows 25% yr/yr, beating analyst expectations

Earnings per share for Q3 rises 152% to $3.17

Company announces $300 mln share repurchase program reauthorization

Outlook

Encore Capital raises full-year 2025 collections guidance to approximately $2.55 bln

Company maintains guidance for 2025 global portfolio purchases to exceed $1.35 bln

Result Drivers

U.S. MARKET STRENGTH - MCM business in the U.S. saw portfolio purchases of $261 mln, up 13%, and record collections of $502 mln, up 25%, driven by market opportunities and operational execution

EUROPEAN GROWTH - Cabot business in Europe achieved higher portfolio purchases of $85 mln and collections of $160 mln, benefiting from spot market opportunities

TECHNOLOGY AND INNOVATION - Deployment of new technologies and enhanced digital capabilities contributed to strong collections performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$460.35 mln
$410.70 mln (5 Analysts)
Q3 EPS
$3.17
Q3 Net Income
Beat
$74.66 mln
$43.30 mln (5 Analysts)
Q3 Operating Expenses
$287.18 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 27.3% above its November 4 closing price of $41.10

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

Press Release: ID:nGNX4M9Gqv

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(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.)