NASDAQ$ECPG

Encore Capital Group Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Encore Capital Group's Q2 2022 earnings were driven by strong U.S. collections, with an increase in future collection expectations leading to higher period revenues.

Encore Capital Group reported strong Q2 2022 earnings, driven by U.S. collections and increased future collection expectations. Global portfolio purchases increased by 21% compared to Q2 2021, with portfolio supply increasing, particularly in the U.S.

  • Q2 earnings were driven by strong U.S. collections.
  • Increase in future collections expectations in the U.S. led to higher period revenues.
  • Global portfolio purchases were $173M, up 21% compared to Q2 2021.
  • Portfolio supply is increasing, particularly in the U.S., driven by lending growth and rising delinquencies.

Headline financials

Total Revenue

$357M

Previous: $428M-16.6%
EPS (adj)

$2.29

Previous: $3.31-30.8%
Portfolio Purchases

$173M

Previous: $143M+21.0%
ERC

$7.56B

No prior period
Capital Expenditures

-$11.9M

Previous: -$10.4M-15.3%
Free Cash Flow

$48.5M

Previous: $86.2M-43.7%
Net Income

$60.4M

Previous: $96.5M-37.4%
Operating Income

$119M

Previous: $174M-31.8%
Gross Profit

$357M

Previous: $418M-14.7%
Cash & Equivalents

$154M

Previous: $199M-22.3%
Total Assets

$4.46B

Previous: $4.68B-4.7%
Stock-Based Comp

$5.12M

Previous: $5.65M-9.4%

Revenue & EPS history

Encore · Revenue · Quarterly

$357M

Q2 2022-16.6%vs Q2 2021
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

Encore · $327M total across 3 segments · Q3 2023

  • Debt Purchasing Revenue
    $303M
  • Servicing Revenue
    $19.9M
  • Other Revenues
    $4.11M

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+2.0%

Avg return

Earnings day

+3.8%

Avg return

5 days after

+3.1%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+38.9%

Q3 2016

Best reaction

-21.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-2.6%-3.6%
Q4 2025+8.2%+21.4%+16.4%
Q3 2025+10.5%+16.3%+23.7%
Q1 2025+23.9%+22.5%+16.7%
Q4 2024-21.9%-30.8%-31.3%
Q3 2024+4.9%+5.3%+3.6%
Q2 2024+9.1%+3.5%+3.0%
Q1 2024+11.9%+10.1%-0.3%
Q4 2023-9.6%-11.0%-12.6%
Q3 2023+9.7%+16.9%+20.3%
Q2 2023-5.7%-2.6%-10.3%
Q1 2023-4.9%-3.8%-5.6%
Q4 2022-6.5%-6.7%-21.2%
Q3 2022-9.7%-5.6%-1.2%
Q2 2022-18.4%-19.9%-22.5%
Q1 2022+6.4%+6.7%+3.7%
Q4 2021-7.0%-7.3%-10.4%
Q3 2021+10.4%+12.4%+10.1%
Q2 2021-2.0%-0.5%+0.9%
Q1 2021+4.8%+0.4%+15.1%
Q4 2020-0.4%+1.9%+25.1%
Q3 2020-2.0%-1.8%+13.7%
Q2 2020+27.8%+22.1%+29.0%
Q1 2020-1.6%-0.2%+13.2%
Q4 2019+10.8%+23.6%-11.7%
Q3 2019+7.7%+7.5%+10.0%
Q2 2019+7.8%+5.3%-2.1%
Q1 2019+17.3%+27.2%+28.6%
Q4 2018+2.2%-2.4%-18.7%
Q3 2018-10.8%-5.5%-8.1%
Q2 2018+11.7%+9.6%+6.7%
Q1 2018+1.1%+0.6%-14.4%
Q4 2017+7.4%+1.8%+9.6%
Q3 2017+6.9%+4.8%-0.5%
Q2 2017+5.8%+7.2%+2.2%
Q1 2017-6.2%+0.0%+7.4%
Q4 2016+1.9%-3.5%-11.9%
Q3 2016+38.9%+39.5%+59.2%
Q2 2016-16.3%-14.3%-10.2%
Q1 2016+2.8%
Q4 2015+5.4%
Q3 2015+0.9%
Q2 2015-5.7%
Q1 2015-3.4%
Q4 2014-7.9%
Q3 2014+0.6%
Q2 2014+1.5%
Q1 2014+2.8%
Q4 2013+1.6%
Q3 2013+1.0%
Q2 2013+11.2%
Q1 2013+4.0%
Q4 2012+5.7%
Q3 2012-7.0%
Q2 2012+8.0%
Q1 2011+8.3%
Q1 2012+8.3%
Q4 2011-2.3%
Q4 2009-2.3%
Q3 2010+2.5%
Q3 2011+2.5%
Q2 2010-9.5%
Q4 2010-9.5%
Q2 2011-9.5%
Q1 2010-2.2%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro