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 +2.66% change in stock price 10 days leading up to the earnings, and a -5.90% change 10 days following the report. On the earnings day itself, the stock moves by -0.88%. 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
188.34M
-10.99%
-35.58%
Gross Margin
--
--
--
Operating Margin
-7.99%
-142.55%
-122.02%
Net Margin
-119.63%
-6.52%
-1241.51%
EPS
-9.42
-17.37%
-847.62%
No Data Available
ECPG Earnings Analysis
Encore Capital Group Inc Corporation (ECPG.O) Earnings Conference Call
Positive
Record Portfolio Purchases Growth: Encore Capital Group achieved significant growth in 2024, with global portfolio purchases reaching an all-time high of $1.35 billion, a 26% increase compared to 2023.
Collections Growth Performance: Collections grew by 16% year-over-year, totaling $2.16 billion in 2024, driven by higher portfolio purchases and strong operational performance.
Cash Generation Increase: The company's cash generation increased by 20% compared to 2023, highlighting its ability to generate significant cash flow from its operations.
Leverage Ratio Improvement: Encore's leverage ratio improved from 2.9x at the end of 2023 to 2.6x at the end of 2024, indicating a stronger balance sheet even while making record portfolio purchases.
Record Portfolio Purchase Growth: Midland Credit Management (MCM) saw a record portfolio purchase of $1 billion in 2024, up 23% from the previous year, and collections increased by 20%.
Favorable Market Conditions: The U.S. market conditions remain favorable, with rising credit card charge-off rates and delinquencies, leading to strong purchasing opportunities for Encore.
Collections Growth and Future Success: Cabot Credit Management's collections increased by 8% in 2024, and despite restructuring efforts, the company is positioned for future success with a focus on operational improvements.
Positive Growth Outlook: Encore expects to exceed its 2024 portfolio purchasing levels in 2025 and anticipates global collections to grow by 11% to $2.4 billion, demonstrating a positive outlook for the upcoming year.
Negative
Earnings Impact from Restructuring: Cabot's restructuring actions negatively impacted Encore's earnings for the fourth quarter and full year 2024, leading to a $101 million goodwill impairment.
Market Exit Impact: The exit from two underperforming markets and reductions in Cabot's estimated remaining collections resulted in negative changes of $129 million in expected future recoveries in Q4.
Competitive Business Environment: Cabot's business environment remains highly competitive and is affected by subdued lending growth and low charge-offs, which could hinder future performance.
UK Market Growth Challenges: Despite record portfolio purchases, the UK market is growing slowly, and Cabot's purchasing levels are not expected to continue in 2025.
Restructuring Impact on Expenses: Operating expenses were negatively impacted by non-cash charges related to the Cabot restructuring, which do not reflect the underlying strength of the business.
ECPG FAQs
How does ECPG typically perform around its earnings report dates?
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ECPG Earning Call Sentiment
Encore Capital Group, Inc. (ECPG) Q4 2024 Earnings Call Transcript
ECPG.O
-3.41%Positive
The earnings call summary reveals mixed signals: strong portfolio purchases and collections growth are positive, but high interest expenses, competitive pressures, and significant goodwill impairment are concerns. The Q&A section highlights management's evasiveness on key issues, contributing to uncertainty. While share repurchases are planned, they are postponed to 2025. Given the lack of market cap data, we assume a neutral market reaction due to the balance of positive and negative factors, resulting in a neutral sentiment prediction for the stock price over the next two weeks.
