Encore Capital Shares Plunge 21.9% Since Q4 Earnings Miss
ECPG shares have plummeted 21.9% since it reported fourth-quarter 2024 results on Feb. 26, 2025, as investors likely weighed the impact of declining debt-purchasing revenues against rising collections and strong portfolio purchasing. However, Encore Capital Group Inc's bottom line showed an improvement of 20% year over year, partially offsetting concerns about falling revenue. The company's adjusted earnings per share (EPS) of $1.50 missed the Zacks Consensus Estimate by 3.2%, but global collections grew 21% year over year to $554.6 million.
- The plunge in ECPG shares suggests that investors are becoming increasingly cautious about the long-term sustainability of debt-purchasing revenues, potentially foreshadowing a shift towards more conservative strategies for the company.
- Will Encore Capital's ability to maintain its growth trajectory in collections and portfolio purchasing be enough to offset declining revenue and interest expenses in the coming quarters?