Overview

* Encore Capital ( ECPG ) Q2 revenue rises 24%, beating analyst expectations, per LSEG data

* Net income for Q2 jumps 82%, exceeding analyst estimates, per LSEG data

* Company raises full-year collections guidance, reflecting confidence in growth

Outlook

* Encore raises full-year collections guidance to $2.5 bln, up 15.5% year-over-year

* Company maintains guidance for global portfolio purchasing to exceed $1.35 bln

Result Drivers

* U.S. MARKET CONDITIONS - Favorable purchasing conditions in the U.S. drove record portfolio purchases and collections

* MCM PERFORMANCE - MCM business in the U.S. achieved record portfolio purchases and collections, attributed to superior execution

* EUROPEAN GROWTH - Cabot business in Europe saw a 10% increase in collections, aligning with historical trends

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $442.12 $383.40

Revenue mln mln (5

Analysts

)

Q2 EPS $2.49

Q2 Net Beat $58.72 $34.20

Income mln mln (5

Analysts

)

Q2 $291.39

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 ( ECPG ) is $56.50, about 35.2% above its August 5 closing price of $36.64

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)