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Dec 31, 2022
Encore Q4 2022 Earnings Report
Reported consolidated financial results for the fourth quarter and full year ended December 31, 2022.
Key Takeaways
Encore Capital Group reported strong financial and operational performance for 2022, with earnings per share second only to the previous year's extraordinary result. Increased lending by banks and rising delinquencies have led to a transition in the U.S. credit cycle, increasing opportunities to deploy capital at strong returns. In Q4, accounting items negatively impacted results, but the company still delivered strong full-year results.
Collections decreased by 16% to $436.16 million.
Revenues decreased by 35% to $233.99 million.
Portfolio purchases increased by 23% to $225.34 million.
GAAP net loss was $(73.12) million, with a loss per share of $(3.11).
Forward Guidance
Encore expects MCM's portfolio purchases in Q1 2023 to be at least $200 million, more than double Q1 2022 purchases, with a robust purchasing pipeline for 2023.
Positive Outlook
- MCM’s portfolio purchases in Q1 2023 to be at least $200 million dollars
- Attractive returns on portfolio purchases
- Purchasing pipeline for 2023 appears equally robust
- Well positioned to capitalize on emerging opportunities
- Rising portfolio supply
Historical Earnings Impact
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Avg. Return Before/After Earnings
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