Encore Capital Group (ECPG) Tops Q1 Earnings and Revenue Estimates

Core Insights - Encore Capital Group (ECPG) reported quarterly earnings of $1.93 per share, exceeding the Zacks Consensus Estimate of $1.24 per share, and up from $0.95 per share a year ago [1] - The earnings surprise for the quarter was 55.65%, following a previous quarter where the company reported earnings of $1.50 per share against an expectation of $1.55, resulting in a surprise of -3.23% [2] - The company generated revenues of $392.78 million for the quarter, surpassing the Zacks Consensus Estimate by 5.46%, compared to $328.39 million in the same quarter last year [3] Financial Performance - Over the last four quarters, Encore Capital Group has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2][3] - The current consensus EPS estimate for the upcoming quarter is $1.42, with expected revenues of $385.75 million, and for the current fiscal year, the estimate is $6.02 on $1.57 billion in revenues [8] Market Position - Encore Capital Group shares have declined approximately 30.9% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [4] - The Zacks Industry Rank for Financial - Consumer Loans places it in the top 31% of over 250 Zacks industries, indicating a favorable position as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [4][5] - The current Zacks Rank for Encore Capital Group is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [7]