Encore Capital Group Inc. (ECPG) saw its stock price surge 5.71% in after-hours trading on Wednesday, following the release of its impressive first-quarter 2025 financial results. The company significantly outperformed analyst expectations, demonstrating robust growth across key metrics.
Encore Capital reported earnings per share (EPS) of $1.93 for Q1 2025, substantially surpassing the IBES estimate of $1.21. This represents a remarkable 103% year-over-year increase from the previous year's EPS of $0.95. The company's net income for the quarter stood at $46.796 million, also beating the IBES estimate of $29 million by a wide margin.
The strong financial performance was underpinned by significant growth in global portfolio purchases and collections. Encore Capital's global portfolio purchases increased by 24% to $368 million, driven by record purchases of $316 million in the U.S. market. Global collections saw an 18% rise, totaling $605 million, with the U.S. contributing a record $454 million. The company's focus on strategic initiatives and operational efficiencies appears to be paying off, as evidenced by these robust results. With Q1 revenue reaching $392.775 million and operating expenses at $263.432 million, Encore Capital has demonstrated its ability to drive growth while managing costs effectively.
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