Encore Capital Group (ECPG) To Report Earnings Tomorrow:

Debt recovery company Encore Capital Group (NASDAQ:ECPG) will be reporting results this Wednesday afternoon. Here’s what investors should know.

Encore Capital Group beat analysts’ revenue expectations last quarter, reporting revenues of $460.4 million, up 25.4% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Is Encore Capital Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Encore Capital Group’s revenue to grow 58.9% year on year, a reversal from the 4.2% decrease it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Encore Capital Group has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Encore Capital Group’s peers in the specialty finance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. HA Sustainable Infrastructure Capital delivered year-on-year revenue growth of 12.2%, beating analysts’ expectations by 33.3%, and Capital Southwest reported revenues up 18.2%, topping estimates by 5.3%. HA Sustainable Infrastructure Capital traded up 10.8% following the results while Capital Southwest’s stock price was unchanged.

Read our full analysis of HA Sustainable Infrastructure Capital’s results here and Capital Southwest’s results here.

The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the specialty finance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 10% on average over the last month. Encore Capital Group is up 2.3% during the same time and is heading into earnings with an average analyst price target of $62.67 (compared to the current share price of $56.65).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.