Encore Capital Q3 revenue rises 18%, beats estimates

Overview

• US debt recovery firm's Q3 revenue rose 18% yr/yr, beating analyst expectations

• Net income for Q3 beat analyst estimates

• Q3 EPS rose 76% to $5.57

Outlook

• Encore Capital raises 2026 global portfolio purchases outlook to $1.50 bln-$1.55 bln

• Company expects 2026 global collections of $2.90 bln-$2.95 bln, up 12-14% yr/yr

• Encore Capital now sees 2026 EPS at $15.50-$16.00, up over 40% from 2025

Result Drivers

• RECORD U.S. COLLECTIONS - Co said record collections in its U.S. business were driven by strong execution, significant portfolio purchasing, and new technology deployment

• FAVORABLE U.S. MARKET - Co cited robust portfolio supply and attractive market conditions in the U.S. as supporting growth

• MODEST EUROPEAN GROWTH - Co said European collections rose 2% yr/yr, contributing to overall results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the corporate financial services peer group is "buy"

• Wall Street's median 12-month price target for Encore Capital Group, Inc. is $115.00, about 15.2% above its November 3 closing price of $99.83

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)