Encore Capital Group, Inc. (ECPG - Free Report) reported second-quarter 2016 adjusted net income of $1.29 per share, which beat the Zacks Consensus Estimate by 7.5%. Also, the bottom line improved 6.6% year over year on higher revenues.
Including one-time items, the company posted net income of $1.14 per share, up 17.5% from the year-ago quarter.
Second-Quarter Operational Update
Total revenue at Encore Capital grew 2.4% year over year to $289.4 million. The year-over-year increase was fueled by significant improvement in other revenues. However, the top line missed the Zacks Consensus Estimate by 2.6%.
Gross collections dipped 1% year over year to $434 million compared with $437 million in the prior-year quarter.
Total operating expenses of $197.7 million decreased 0.3% year over year. The decline in expenses was attributable to lower cost of legal collections as well as lesser general and administrative expenses in the quarter.
Encore Capital’s second-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 2% year over year to a record $279 million.
Financial Update
As of Jun 30, 2016, total assets of Encore Capital was $3.8 billion, down 9.7% from the 2015-end level.
As of Jun 30, 2016, Encore Capital had cash and cash equivalents of $139.0 million, up 12.1% from year-end 2015.
Investment in Receivable portfolio totaled $2.5 billion as of Jun 30, 2016, up 1.2% from year-end 2015.
Total debt amounted to $2.8 billion, down 3.2% from the 2015-end level.
As of Jun 30, 2016, total shareholders’ equity was $619.4 million, up 3.9% from year-end 2015.
Encore Capital’s cash from operations increased 3.5% year over year to $49.1 million in the first six months of 2016.
Zacks Rank and Performance of Other Stocks
Encore Capital carries a Zacks Rank #3 (Hold). Among other players from the finance sector that have reported their second-quarter results so far, the bottom line at American Express Company (AXP - Free Report) , Alliance Data Systems Corporation and Total System Services, Inc. beat their respective Zacks Consensus Estimate.
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Encore Capital Group, Inc. (ECPG - Free Report) reported second-quarter 2016 adjusted net income of $1.29 per share, which beat the Zacks Consensus Estimate by 7.5%. Also, the bottom line improved 6.6% year over year on higher revenues.
Including one-time items, the company posted net income of $1.14 per share, up 17.5% from the year-ago quarter.
Second-Quarter Operational Update
Total revenue at Encore Capital grew 2.4% year over year to $289.4 million. The year-over-year increase was fueled by significant improvement in other revenues. However, the top line missed the Zacks Consensus Estimate by 2.6%.
Gross collections dipped 1% year over year to $434 million compared with $437 million in the prior-year quarter.
Total operating expenses of $197.7 million decreased 0.3% year over year. The decline in expenses was attributable to lower cost of legal collections as well as lesser general and administrative expenses in the quarter.
Encore Capital’s second-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 2% year over year to a record $279 million.
Financial Update
As of Jun 30, 2016, total assets of Encore Capital was $3.8 billion, down 9.7% from the 2015-end level.
As of Jun 30, 2016, Encore Capital had cash and cash equivalents of $139.0 million, up 12.1% from year-end 2015.
Investment in Receivable portfolio totaled $2.5 billion as of Jun 30, 2016, up 1.2% from year-end 2015.
Total debt amounted to $2.8 billion, down 3.2% from the 2015-end level.
As of Jun 30, 2016, total shareholders’ equity was $619.4 million, up 3.9% from year-end 2015.
Encore Capital’s cash from operations increased 3.5% year over year to $49.1 million in the first six months of 2016.
Zacks Rank and Performance of Other Stocks
Encore Capital carries a Zacks Rank #3 (Hold). Among other players from the finance sector that have reported their second-quarter results so far, the bottom line at American Express Company (AXP - Free Report) , Alliance Data Systems Corporation and Total System Services, Inc. beat their respective Zacks Consensus Estimate.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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