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Sep 30, 2022
Encore Q3 2022 Earnings Report
Q3 performance reflected impacts of an evolving macroeconomic environment and entering growth portion of supply cycle, particularly in the U.S.
Key Takeaways
Encore Capital Group's Q3 performance was impacted by lower collections due to reduced global portfolio purchasing in 2020 and 2021, normalization of U.S. consumer behavior and currency changes in Europe, but global portfolio purchases were up 38% compared to Q3 2021.
Disciplined execution of strategy has led to strong current position.
Q3 performance reflected impacts of an evolving macroeconomic environment, including lower collections and currency changes.
Entering growth portion of supply cycle, particularly in the U.S.
Global portfolio purchases were $233M, up 38% compared to Q3 2021.
Revenue by Geographic Location
Forward Guidance
Encore Capital Group is well-positioned to capitalize on opportunities ahead with U.S. consumer payment behavior normalizing and entering the growth portion of the industry supply cycle.
Positive Outlook
- U.S. consumer payment behavior is normalizing while U.K. consumers remain stable.
- Entering growth portion of the industry supply cycle.
- U.S. lending now above pre-pandemic levels while U.K. recovery slower.
- U.S. charge off rates steadily rising from pandemic lows while U.K. normalizing more slowly.
- Best-in-class balance sheet with low leverage, global financing and ample liquidity.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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