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Encore Capital Group Inc (ECPG)
NASDAQ:ECPG
Earnings Data
Report Date
Apr 30, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
1.21Last Year’s EPS
0.95Same Quarter Last Year
Strong Buy
Based on 3 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 26, 2025
|% Change Since: -24.35%
|Next Earnings Date:Apr 30, 2025
Earnings Call Sentiment|Neutral
The earnings call reflects a mixed sentiment. While Encore achieved record portfolio purchases and significant growth in collections and cash generation, it faced challenges with Cabot's restructuring and impairments due to issues in the UK and European markets. The strong performance in the U.S. and improved leverage ratio indicate positive momentum, but the substantial write-downs and restructuring in Europe present significant hurdles.Company Guidance
During the Encore Capital Group's fourth quarter 2024 earnings call, CEO Ashish Masih provided guidance for 2025, highlighting several key metrics. The company anticipates global portfolio purchases to exceed the record $1.35 billion achieved in 2024, driven by a strong supply environment in the U.S. where 74% of capital was deployed. They expect global collections to grow by 11% to reach $2.4 billion, building on the 16% increase in 2024 which totaled $2.16 billion. Cash generation is projected to continue its upward trend following a 20% growth in 2024. Additionally, Encore plans to resume share repurchases in 2025 as their leverage ratio decreased from 2.9x in 2023 to 2.6x in 2024, nearing the midpoint of their target range. The company also projects an increase in interest expense to approximately $285 million and an effective tax rate in the mid-20s percentage range.Record Portfolio Purchases
Encore's global portfolio purchases reached a record $1.35 billion in 2024, an increase of 26% compared to 2023, driven by a strong U.S. market.
Strong Collections and Cash Generation Growth
Collections grew by 16% to $2.16 billion, and cash generation increased by 20% in 2024 compared to the previous year.
U.S. Market Performance
MCM in the U.S. had a record year with portfolio purchases reaching $1 billion, up 23% from 2023. Collections in 2024 increased by 20%, with MCM's U.S. ERC exceeding $5 billion for the first time.
Leverage Ratio Improvement
Leverage ratio declined from 2.9x at the end of 2023 to 2.6x at the end of 2024, nearing the midpoint of the target leverage range.
Improved Balance Sheet and Funding Flexibility
Encore effectively managed debt maturities, redeemed euro and sterling notes, and increased its revolving credit facility capacity.
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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 |
|---|---|---|---|
| Feb 26, 2025 | $49.86 | $38.95 | -21.88% |
| 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% |
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 Apr 30, 2025, TBA Not Confirmed.
What is Encore Capital Group Inc (ECPG) earnings time?
Encore Capital Group Inc (ECPG) earnings time is at Apr 30, 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 2025 (Q1) is 1.21.
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