Encore Capital raises 2026 global collections guidance to $2.80 bln-$2.85 bln, up 8-10% yr/yr
Company expects 2026 EPS between $13.00 and $14.00, including $1.00 per share refinancing costs
Encore maintains 2026 portfolio purchasing guidance at $1.4 bln-$1.5 bln
Overview
Debt recovery firm's Q2 revenue and net income beat analyst expectations
Q2 EPS rose 13% yr/yr, includes $1.00 per share in refinancing costs
Company repurchased $27 mln of its shares and raised full-yr collections and EPS guidance
Result drivers
Record U.S. portfolio purchases - Co said favorable market conditions led to record $372 mln in U.S. portfolio purchases in Q2
Record global collections - Co attributed record $737 mln in global collections to strong execution, increased portfolio purchases, and enhanced digital capabilities
Refinancing costs - Q2 EPS included $1.00 per share in refinancing costs, which co said will reduce annual interest expense by about $15 mln going forward
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 20.4% above its August 4 closing price of $95.54
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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