Encore Capital Group (NASDAQ: ECPG) saw its stock price surge 14.62% in pre-market trading on Thursday, following the release of its impressive third-quarter 2025 financial results and subsequent analyst upgrades. The debt recovery solutions provider significantly outperformed market expectations, demonstrating robust growth across its key markets.
Encore Capital reported earnings per share of $3.17 for Q3, marking a substantial 152% increase from $1.26 in the same period last year and handily beating the analyst consensus estimate of $1.83. The company's quarterly revenue also impressed, coming in at $460.353 million, up 25.41% year-over-year and surpassing the analyst estimate of $410.694 million by 12.09%. Notably, Encore's U.S. MCM business saw portfolio purchases increase by 13% to $261 million, while collections surged 25% to a record $502 million. In light of these positive outcomes, the company raised its full-year 2025 collections guidance to approximately $2.55 billion and announced a $300 million share repurchase program reauthorization.
Following the strong results, several analysts have raised their price targets for Encore Capital. Truist Securities increased its target price to $59 from $57, while Janney Montgomery Scott raised its price target to $62 from $56, maintaining a Buy rating on the shares. These upgrades, combined with the company's exceptional performance and optimistic outlook, have contributed to the significant pre-market surge in Encore Capital's stock price.
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