Debt recovery company Encore Capital Group (NASDAQ: ECPG) will be reporting earnings this Wednesday after market hours. Here’s what you need to know.
Encore Capital Group beat analysts’ revenue expectations last quarter, reporting revenues of $491.9 million, up 11.3% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA and EPS estimates.
Is Encore Capital Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Encore Capital Group’s revenue to grow 1.4% year on year, slowing from the 25.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Encore Capital Group rarely misses Wall Street’s revenue estimates.
Looking at Encore Capital Group’s peers in the specialty finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. PROG delivered year-on-year revenue growth of 25.6%, beating analysts’ expectations by 7.8%, and Hercules Capital reported revenues up 1.5%, falling short of estimates by 2.3%. PROG traded up 13.1% following the results while Hercules Capital was down 1.8%.
Read our full analysis of PROG’s results here and Hercules Capital’s results here.
There has been positive sentiment among investors in the specialty finance segment, with share prices up 5.2% on average over the last month. Encore Capital Group is up 3.1% during the same time and is heading into earnings with an average analyst price target of $117 (compared to the current share price of $100.95).
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