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Jun 30, 2023
Encore Q2 2023 Earnings Report
Encore's financial performance reflected normalized consumer behavior and a stable collections environment.
Key Takeaways
Encore Capital Group reported its Q2 2023 financial results, with global collections of $477 million and portfolio purchases of $274 million, up 59% year-over-year, including $213 million in the U.S. The company's GAAP EPS was $1.08.
Global collections reached $477 million.
Portfolio purchases increased by 59% to $274 million, with $213 million in the U.S.
Portfolio supply growth continues in the U.S. market.
GAAP EPS stood at $1.08.
Revenue by Geographic Location
Forward Guidance
Encore expects steady growth in ERC and earnings to continue, driven by higher portfolio purchases and strengthening returns in the U.S. market.
Positive Outlook
- Higher portfolio purchases expected.
- Strengthening returns anticipated in the U.S.
- Steady growth in ERC expected to continue.
- Earnings growth expected to continue.
- Well-positioned to capitalize on growing portfolio purchasing opportunities in the U.S. market.
Challenges Ahead
- Portfolio purchasing in Europe remains very competitive.
- Pricing in Europe does not fully reflect the higher cost of capital.
- Cabot portfolio purchasing is being constrained.
- Higher interest rates are impacting the cost of capital.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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