Encore Capital Group (NASDAQ:ECPG) Releases Quarterly Earnings Results, Beats Estimates By $2.22 EPS

Encore Capital Group (NASDAQ:ECPG) posted its quarterly earnings results on Wednesday. The asset manager reported $5.57 EPS for the quarter, topping the consensus estimate of $3.35 by $2.22, FiscalAI reports. Encore Capital Group had a net margin of 17.67% and a return on equity of 34.07%. The firm had revenue of $544.54 million for the quarter, compared to the consensus estimate of $466.80 million. During the same period last year, the firm posted $3.17 earnings per share. The business’s revenue was up 18.3% compared to the same quarter last year.

Here are the key takeaways from Encore Capital Group’s conference call:

• Encore reported strong third-quarter results: global collections rose 14% to a record $754 million, revenue increased 18% to $545 million, and net income grew 66% to $124 million.
• The company raised its 2026 guidance, now expecting global portfolio purchases of $1.5 billion–$1.55 billion, collections of $2.9 billion–$2.95 billion, and EPS of $15.50–$16. Management also expressed confidence in earnings growth in 2027.
• U.S. market conditions remain favorable, with elevated charge-offs supporting portfolio supply; MCM purchased $310 million of portfolios and collections rose 17%. Improved collections on recent U.S. vintages supported $111 million in changes in recoveries, including $59 million from higher future-recovery estimates.
• Encore’s balance sheet and cash generation strengthened: leverage fell to 2.3x, cash generation increased 18% year over year, and trailing 12-month ROIC rose to 15.7%. The company repurchased $27 million of shares in Q3 and said it could temporarily use more leverage for attractive purchasing opportunities.
• Management said U.S. portfolio pricing has edged higher, though improved collection efficiency has so far offset the increase and returns remain strong. It also accelerated some legal-related expenses as large portfolios aged into the legal collection stage.

Encore Capital Group Stock Down 7.2%

Shares of ECPG stock traded down $9.06 during trading on Friday, hitting $117.11. 186,168 shares of the company were exchanged, compared to its average volume of 304,704. The firm has a market capitalization of $2.48 billion, a price-to-earnings ratio of 7.51 and a beta of 1.29. The company has a debt-to-equity ratio of 3.87, a quick ratio of 0.96 and a current ratio of 0.96. The business’s 50-day simple moving average is $99.61 and its 200 day simple moving average is $83.92. Encore Capital Group has a twelve month low of $46.80 and a twelve month high of $126.74.

Analyst Ratings Changes

Several research analysts have recently commented on ECPG shares. Truist Financial raised their price objective on Encore Capital Group from $112.00 to $122.00 and gave the stock a “buy” rating in a research note on Thursday. Zacks Research cut shares of Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Citigroup restated a “market outperform” rating on shares of Encore Capital Group in a report on Thursday. Northland Securities set a $124.00 price target on shares of Encore Capital Group in a research note on Tuesday, October 13th. Finally, Citizens Jmp raised their target price on shares of Encore Capital Group from $115.00 to $140.00 and gave the company a “market outperform” rating in a research note on Thursday. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $128.67.

Trending Headlines about Encore Capital Group

Here are the key news stories impacting Encore Capital Group this week:

• Positive Sentiment: Q3 results beat expectations: Encore reported EPS of $5.57, versus analyst estimates of about $3.35, while revenue rose 18.3% year over year to $544.5 million, also topping forecasts. Global collections reached a record $754 million, up 14%. Encore Capital Group Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Raised 2026 guidance: The company now expects full-year EPS of $15.50–$16 and increased its portfolio-purchase outlook to $1.5 billion–$1.55 billion. The higher targets reinforce expectations for continued earnings growth and investment in portfolios. Encore Capital anticipates 2026 EPS of $15.50 to $16
• Positive Sentiment: Analysts raised targets: Citizens JMP lifted its target to $140 and maintained a Market Outperform rating; Truist raised its target to $122 and kept a Buy rating. The higher targets signal increased confidence after the results. Citizens JMP price target Truist price target
• Neutral Sentiment: Forward estimates mostly moved higher: Northland Securities raised its estimates for several 2027 quarters, but trimmed its Q4 2026 EPS estimate to $3.52 from $3.64. The mixed revisions are smaller in scale than the company’s earnings beat and guidance increase. Northland estimate revisions

Encore Capital Group Company Profile

Encore Capital Group, Inc is a specialty finance company that purchases portfolios of charged-off consumer receivables and provides debt recovery and management services. Through its operating businesses, the company works with consumers to resolve outstanding obligations through payment plans and other repayment arrangements.

Encore serves consumers and creditors across multiple markets, including the United States, the United Kingdom and other European countries. Its major operating platforms include Midland Credit Management in the United States and Cabot Credit Management in Europe.