Encore Capital Group Inc (ECPG) Q3 2023 Earnings: GAAP EPS of $0.79, Net Income Down by 39%
Encore Capital Group Inc (NASDAQ:ECPG) reported Q3 2023 earnings with a GAAP EPS of $0.79.
Global collections amounted to $465 million and portfolio purchases totaled $231 million.
GAAP net income dropped by 39% to $19.339 million from $31.494 million in Q3 2022.
Encore Capital Group Inc (NASDAQ:ECPG) anticipates 2023 to be a record year of capital deployment for its MCM business.
On November 1, 2023, Encore Capital Group Inc (NASDAQ:ECPG) released its consolidated financial results for Q3 2023. The company reported global collections of $465 million and portfolio purchases of $231 million, which included $179 million in the U.S. The GAAP EPS stood at $0.79.
Financial Highlights
The company's financial highlights for the third quarter of 2023 showed a 1% decrease in portfolio purchases from $232.652 million in Q3 2022 to $230.559 million in Q3 2023. The Estimated Remaining Collections (ERC) saw an 8% increase from $7.312 billion in Q3 2022 to $7.878 billion in Q3 2023. Revenues increased by 1% from $307.752 million in Q3 2022 to $309.619 million in Q3 2023. However, GAAP net income saw a significant decrease of 39% from $31.494 million in Q3 2022 to $19.339 million in Q3 2023.
Company's Performance and Future Outlook
Encore Capital Group Inc (NASDAQ:ECPG) reported a strong purchasing period for its U.S. business while maintaining a stable collections performance in key markets. The company's MCM business deployed $179 million in Q3 at an attractive 2.4x purchase price multiple. The company expects 2023 to be a record year of capital deployment for its MCM business at strong returns. The company also added approximately $175 million of liquidity since the end of the third quarter at attractive terms.
Financial Tables
The company's condensed consolidated statements of financial condition showed total assets of $4.760 billion as of September 30, 2023, compared to $4.508 billion as of December 31, 2022. Total liabilities stood at $3.561 billion as of September 30, 2023, compared to $3.329 billion as of December 31, 2022. The company's condensed consolidated statements of income showed revenues of $309.619 million and net income of $19.339 million for the three months ended September 30, 2023.
Conclusion
Despite the decrease in net income, Encore Capital Group Inc (NASDAQ:ECPG) maintains a positive outlook for its U.S. business, expecting a record year of capital deployment in 2023. The company's stable collections performance and strong purchasing in the U.S. market mark the highlights of the Q3 2023 earnings report.
Explore the complete 8-K earnings release (here) from Encore Capital Group Inc for further details.
This article first appeared on GuruFocus.
