Encore Capital Group (ECPG) Misses Q3 Earnings Estimates

Core Insights - Encore Capital Group (ECPG) reported quarterly earnings of $1.26 per share, missing the Zacks Consensus Estimate of $1.47 per share, but showing an increase from $0.79 per share a year ago [1] - The company posted revenues of $367.07 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.93% and up from $309.62 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was -14.29%, following a previous quarter where the company exceeded expectations with earnings of $1.34 per share [2] - Over the last four quarters, Encore Capital Group has surpassed consensus EPS estimates three times [2] Revenue Insights - The company has topped consensus revenue estimates two times over the last four quarters [3] - Current consensus EPS estimate for the upcoming quarter is $1.81 on revenues of $371.46 million, and for the current fiscal year, it is $5.56 on revenues of $1.42 billion [8] Market Performance - Encore Capital Group shares have declined approximately 6.4% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Financial - Consumer Loans industry, to which Encore Capital Group belongs, is currently in the bottom 34% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [6]