Debt recovery company Encore Capital Group (NASDAQ: ECPG) will be reporting earnings this Wednesday after market hours. Here’s what investors should know.
Encore Capital Group beat analysts’ revenue expectations last quarter, reporting revenues of $473.6 million, up 78.3% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue 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 13.6% year on year, slowing from the 19.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Encore Capital Group has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Encore Capital Group’s peers in the financial services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. PROG delivered year-on-year revenue growth of 11.1%, meeting analysts’ expectations, and Paymentus reported revenues up 30.2%, topping estimates by 6.4%. PROG traded up 24.1% following the results.
Read our full analysis of PROG’s results here and Paymentus’s results here.
There has been positive sentiment among investors in the financial services segment, with share prices up 8.1% on average over the last month. Encore Capital Group is up 14.6% during the same time and is heading into earnings with an average analyst price target of $96.67 (compared to the current share price of $83.10).
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