Encore Capital Group Beats Estimates on Top and Bottom Lines
Encore Capital Group (NAS: ECPG) reported earnings on Feb. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Encore Capital Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Gross margins contracted, operating margins dropped, and net margins were steady.
Encore Capital Group logged revenue of $120.7 million. The six analysts polled by S&P Capital IQ anticipated revenue of $118.4 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $99.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.67. The six earnings estimates compiled by S&P Capital IQ anticipated $0.65 per share on the same basis. GAAP EPS of $0.66 for Q4 were 18% higher than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.7%, 40 basis points worse than the prior-year quarter. Operating margin was 27.1%, 110 basis points worse than the prior-year quarter. Net margin was 14.2%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $130.3 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $533.6 million. The average EPS estimate is $2.95.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 78 members out of 88 rating the stock outperform, and 10 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Encore Capital Group a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Encore Capital Group is outperform, with an average price target of $36.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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