Encore Capital beats Q4 revenue expectations
Overview
Specialty finance firm's Q4 revenue beat analyst expectations
Net income for Q4 beat analyst estimates
Company repurchased 9% of shares for $89.5 mln in 2025
Outlook
Encore Capital expects 2026 earnings per share to increase 10% to $12.00
Company anticipates 2026 global collections to rise 5% to $2.7 bln
Encore Capital forecasts 2026 portfolio purchases between $1.4 bln and $1.5 bln
Result Drivers
U.S. MARKET PERFORMANCE - Encore's U.S. operations led to record portfolio purchases and collections, driven by favorable market conditions and strong execution
TECHNOLOGY AND INNOVATION - Deployment of new technologies and enhanced digital capabilities contributed to record collections
EUROPEAN OPERATIONS - Cabot's collections in Europe increased by 9%, maintaining historical trends in portfolio purchases
Company press release: ID:nGNX4mdCVQ
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $473.55 mln | $422.19 mln (4 Analysts) |
Q4 EPS |
| $3.37 |
|
Q4 Net Income | Beat | $76.66 mln | $48.71 mln (4 Analysts) |
Q4 Operating Expenses |
| $300.16 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $70.00, about 20.6% above its February 24 closing price of $58.02
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
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