ECPG Earnings Prediction
The chart below shows how ECPG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ECPG sees a +2.57% change in stock price 10 days leading up to the earnings, and a -2.86% change 10 days following the report. On the earnings day itself, the stock moves by -0.69%. This data can give you a slight idea of what to expect for the next quarter's release.
ECPG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
292.36M
11.43%
3.11%
Gross Margin
--
--
--
Operating Margin
36.29%
2.83%
1.03%
Net Margin
10.48%
42.20%
-7.67%
EPS
1.26
59.49%
-5.97%
No Data Available
ECPG Earnings Analysis
Encore Capital Group, Inc. Corporation (ECPG.O) Earnings Conference Call
Positive
Portfolio Purchase Surge: 1. Record Portfolio Purchases: Encore's global portfolio purchases increased 23% year-over-year to $282 million, driven primarily by strong U.S. deployments in the MCM business.
Collections Surge: 2. Significant Collections Growth: Collections in Q3 reached $550 million, up 18% compared to the same quarter last year, reflecting the impact of higher portfolio purchases.
Cash Generation Increase: 3. Strong Cash Generation: Cash generation in Q3 was up 22% compared to Q3 2023, highlighting the company's ability to convert portfolio purchases into cash effectively.
Cash Efficiency Improvement: 4. Improved Cash Efficiency Margin: The cash efficiency margin increased from 51% to 53.6% year-over-year, demonstrating enhanced operational efficiency as collections outpaced expense growth.
Earnings Surge: 5. Increased Earnings: GAAP net income rose to $31 million, a 58% increase compared to Q3 2023, with GAAP EPS reaching $1.26, up 59% year-over-year.
Negative
Market Exit Loss Impact: 1. Loss from Market Exit: The exit from the secured NPL market in Spain resulted in a pretax loss of $8 million, equating to a $0.27 reduction in earnings per share.
Rising Legal Costs: 2. Increased Legal Expenses: Legal expenses rose significantly year-over-year due to higher purchasing volumes, indicating a potential ongoing increase in costs as past purchases flow through the legal process.
Cautious Portfolio Strategy: 3. Selective Portfolio Purchases: Cabot's portfolio purchases were only $52 million in Q3, reflecting a cautious approach due to competitive pricing that does not yet align with higher funding costs.
Collections Efficiency Decline: 4. Lower Collections Efficiency for Cabot: Cabot's collections were at 97% of expectations, indicating underperformance compared to the U.S. segment, which achieved 105% of expectations.
Operating Expenses Increase: 5. Operating Expenses Growth: Operating expenses increased by 11% compared to Q3 last year, despite collections growth, suggesting rising costs that could impact profitability.
ECPG FAQs
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ECPG Earning Call Sentiment
Encore Capital Group, Inc. (ECPG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ECPG.O
-1.45%Positive
The earnings call summary reflects strong financial performance, with significant increases in portfolio purchases, collections, GAAP net income, and EPS. The company is focusing on U.S. market opportunities, maintaining a strong balance sheet, and planning share repurchases, which are positive indicators. Despite challenges in Europe and competitive pressures, the overall outlook is optimistic. The Q&A reveals confidence in capital allocation and improved operating leverage. The combination of strong earnings, optimistic guidance, and shareholder return plans suggests a positive stock price movement over the next two weeks.