Encore Capital Group Earnings: Here’s Why Shares are Down Now

Encore Capital Group, Inc. (NASDAQ:ECPG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.3%.

Encore Capital Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 3.66% to $0.79 in the quarter versus EPS of $0.67 in the year-earlier quarter.

Revenue: Rose 19% to $143.61 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Encore Capital Group, Inc. reported adjusted EPS income of $0.79 per share. By that measure, the company beat the mean analyst estimate of $0.78. It beat the average revenue estimate of $143.6 million.

Quoting Management: “2012 was an exceptional year for Encore,” said Brandon Black, the Company’s President and Chief Executive Officer. “We delivered record earnings, record collections and record operating cash flow, even as we made investments to strengthen our core business and expand our services for financially stressed consumers through the acquisition of Propel Financial Services. We believe that these strategic investments, combined with our analytic strength and our disciplined approach to deploying capital, position us well in an increasingly complex business and regulatory environment.”

Key Stats (on next page)…

Revenue increased 2.08% from $140.68 million in the previous quarter. EPS decreased 3.66% from $0.82 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.82 and has not changed. For the current year, the average estimate is a profit of $3.13, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)