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PRA Group (PRAA) Posts In-Line Earnings & Revenues in Q2
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PRA Group Inc.’s (PRAA - Free Report) second-quarter 2016 earnings per share of 83 cents came in line with the Zacks Consensus Estimate but declined 23% from the year-ago quarter.
PRA Group’s total revenue was $228 million, down 3.8% year over year. Revenues, however, also met the Zacks Consensus Estimate.
Decline in the second-quarter revenues mainly stemmed from two non-accrual portfolios in Italy, which added cash collections of $6.7 million to principal amortization.
Quarterly Update
Cash collections dipped 0.6% year over year to $387.2 million, mainly due to lower collections at Americas-Insolvency and America-Core. While collections at Americas-Insolvency were down 1.3% to $67.7 million, those at America-Core dropped 2.6% to $213 million. On the other hand, collections at Europe-Core increased 9.5% to $102.9 million, which those at Europe-Insolvency surged 35.5% to $2.7 million, both on a year-over-year basis.
Additionally, PRA Group’s revenues from finance receivables income were $204 million, down 7.3%. Other revenues plunged 35.45% to $2.1 million. Fee income soared 61% to $22.3 million.
Operating expenses rose 4.7% year over year to $155 million. This was mainly due to higher legal collection fees, agency fees, outside fees and services, communication, rent and occupancy expenses, depreciation & amortization and other operating expenses.
Financial Update
As of Jun 30, 2016, PRA Group had total assets worth $3.3 billion, up 9% from year-end 2015. The company exited the quarter with total equity of $0.9 billion, up 8.2% from Dec 31, 2015.
Cash and cash equivalents as of Jun 30, 2016 were $93.5 million, up 11.4% from year-end 2015. For the reported quarter, borrowings increased 11.3% to $1.9 billion.
Zacks Rank and Performance of Other Stocks from Finance-Miscellaneous Services Industry:
PRA Group currently holds a Zacks Rank #2 (Buy).
The bottom line at American Express Co. (AXP - Free Report) , Euronet Worldwide Inc. (EEFT - Free Report) and CIT Group Inc. beat their respective Zacks Consensus Estimate for the quarter ending on Jun 30, 2016.
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PRA Group (PRAA) Posts In-Line Earnings & Revenues in Q2
PRA Group Inc.’s (PRAA - Free Report) second-quarter 2016 earnings per share of 83 cents came in line with the Zacks Consensus Estimate but declined 23% from the year-ago quarter.
PRA Group’s total revenue was $228 million, down 3.8% year over year. Revenues, however, also met the Zacks Consensus Estimate.
Decline in the second-quarter revenues mainly stemmed from two non-accrual portfolios in Italy, which added cash collections of $6.7 million to principal amortization.
Quarterly Update
Cash collections dipped 0.6% year over year to $387.2 million, mainly due to lower collections at Americas-Insolvency and America-Core. While collections at Americas-Insolvency were down 1.3% to $67.7 million, those at America-Core dropped 2.6% to $213 million. On the other hand, collections at Europe-Core increased 9.5% to $102.9 million, which those at Europe-Insolvency surged 35.5% to $2.7 million, both on a year-over-year basis.
Additionally, PRA Group’s revenues from finance receivables income were $204 million, down 7.3%. Other revenues plunged 35.45% to $2.1 million. Fee income soared 61% to $22.3 million.
Operating expenses rose 4.7% year over year to $155 million. This was mainly due to higher legal collection fees, agency fees, outside fees and services, communication, rent and occupancy expenses, depreciation & amortization and other operating expenses.
Financial Update
As of Jun 30, 2016, PRA Group had total assets worth $3.3 billion, up 9% from year-end 2015. The company exited the quarter with total equity of $0.9 billion, up 8.2% from Dec 31, 2015.
Cash and cash equivalents as of Jun 30, 2016 were $93.5 million, up 11.4% from year-end 2015. For the reported quarter, borrowings increased 11.3% to $1.9 billion.
PRA GROUP INC Price, Consensus and EPS Surprise
PRA GROUP INC Price, Consensus and EPS Surprise | PRA GROUP INC Quote
Zacks Rank and Performance of Other Stocks from Finance-Miscellaneous Services Industry:
PRA Group currently holds a Zacks Rank #2 (Buy).
The bottom line at American Express Co. (AXP - Free Report) , Euronet Worldwide Inc. (EEFT - Free Report) and CIT Group Inc. beat their respective Zacks Consensus Estimate for the quarter ending on Jun 30, 2016.
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 >>