NASDAQ$ECPG

Encore Capital Group Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Delivered solid GAAP earnings and adjusted earnings increased 8% compared to the same quarter a year ago.

Encore Capital Group reported consolidated financial results for Q4 2019. The company delivered solid GAAP earnings and adjusted earnings were up 8% compared to the same quarter a year ago. Portfolio purchases were $235 million, including $155 million in the U.S. and $80 million in Europe.

  • Delivered record results in nearly every important aspect of the business
  • Set new highs for global collections, revenues, ERC and earnings.
  • Made significant progress on a number of strategic priorities, which include concentrating on the valuable U.S. and U.K. markets
  • Expect to generate new records for collections, revenues, ERC, and earnings in 2020 while further reducing debt leverage

Headline financials

Total Revenue

$348M

Previous: $349M-0.3%
EPS (adj)

$1.56

Previous: $1.45+7.6%
Portfolio Purchases

$235M

No prior period
Collections

$499M

Previous: $484M+3.1%
Capital Expenditures

$8.89M

Previous: $30M-70.4%
Free Cash Flow

$38.9M

Previous: $36.7M+5.9%
Net Income

$43.1M

Previous: $47M-8.4%
Operating Income

$113M

Previous: $116M-2.3%
Gross Profit

$165M

Previous: $193M-14.3%
Cash & Equivalents

$192M

Previous: $157M+22.2%
Total Assets

$4.91B

Previous: $4.63B+6.0%
Stock-Based Comp

$3.15M

Previous: $2.53M+24.4%

Revenue & EPS history

Encore · Revenue · Quarterly

$348M

Q4 2019-0.3%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

We feel very optimistic as we begin 2020. We expect to generate new records for collections, revenues, ERC, and earnings in 2020 while further reducing our debt leverage.

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 Q4 2019

Historical avgQ4 2019

+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%

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