We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PRA Group (PRAA) Incurs Q4 Loss, Declares Management Changes
Read MoreHide Full Article
PRA Group Inc. (PRAA - Free Report) incurred an operating loss of 33 cents per share in fourth-quarter 2016. The Zacks Consensus Estimate was of an operating earnings of 68 cents per share. The company had reported operating earnings of $1.03 per share in the year-ago quarter. The deterioration mainly stemmed from a substantial decline in revenues.
Net loss of 38 cents per share in the reported quarter compared unfavorably with earnings of $1.83 per share in the year-ago quarter. This was primarily because of a charge of $62.5 million against certain pools of finance receivables.
PRA Group’s total revenue of $155.3 million decreased 33% year over year due to lower income from finance receivables. Reported revenues also missed the Zacks Consensus Estimate of $219.5 million.
Additionally, PRA Group’s revenues from finance receivables income plunged 37% to $132 million. Fee income was up 7.7% to $21.2 million, while other revenues increased 2.8% to $2.1 million. Cash collections in the fourth quarter were $348.8 million, down 6% year over year.
Total operating expenses decreased 6.8% year over year to $148.2 million. This was mainly due to lower, compensation and employee service expenses, outside fees and services and other operating expenses.
PRA Group invested $199.8 million in new finance receivables in the fourth quarter, down 12% year over year.
Financial Update
As of Dec 31, 2016, PRA Group had total assets worth $3.2 billion, up 5.7% from year-end 2015. The company exited the quarter with total equity of $917 million, up 9.2% from Dec 31, 2015.
As of Dec 31, 2016, cash and cash equivalents were $94.3 million, up 32% year over year. This was because borrowings increased 3.5% year over year to $1.78 billion.
Annualized return on average equity was a negative 7.9% compared with a return of 19.8% in the year-ago quarter.
Management Change
The company announced a management succession plan that is aimed to steer the company to profitability. Per the plan, Kevin Stevenson, the current president and chief administrative officer, will succeed Steve Fredrickson as the chief executive officer of the company. Stevenson will take office following the 2017 Annual Meeting of Stockholders, which will be held on Jun 1, 2017.
Financial Engines reported a positive earnings surprise in three out of the last four quarters with an average beat of 2.34%.
Houlihan Lokey posted a positive earnings surprise in three out of the last four quarters with an average beat of 4.87%.
Marathon Patent posted a positive earnings surprise in two out of the last four quarters with an average beat of 8.45%.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1?
In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with
jaw-dropping growth. Each could go public in the coming months.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
PRA Group (PRAA) Incurs Q4 Loss, Declares Management Changes
PRA Group Inc. (PRAA - Free Report) incurred an operating loss of 33 cents per share in fourth-quarter 2016. The Zacks Consensus Estimate was of an operating earnings of 68 cents per share. The company had reported operating earnings of $1.03 per share in the year-ago quarter. The deterioration mainly stemmed from a substantial decline in revenues.
Net loss of 38 cents per share in the reported quarter compared unfavorably with earnings of $1.83 per share in the year-ago quarter. This was primarily because of a charge of $62.5 million against certain pools of finance receivables.
Operational Update
PRA Group’s total revenue of $155.3 million decreased 33% year over year due to lower income from finance receivables. Reported revenues also missed the Zacks Consensus Estimate of $219.5 million.
Additionally, PRA Group’s revenues from finance receivables income plunged 37% to $132 million. Fee income was up 7.7% to $21.2 million, while other revenues increased 2.8% to $2.1 million. Cash collections in the fourth quarter were $348.8 million, down 6% year over year.
Total operating expenses decreased 6.8% year over year to $148.2 million. This was mainly due to lower, compensation and employee service expenses, outside fees and services and other operating expenses.
PRA Group invested $199.8 million in new finance receivables in the fourth quarter, down 12% year over year.
Financial Update
As of Dec 31, 2016, PRA Group had total assets worth $3.2 billion, up 5.7% from year-end 2015. The company exited the quarter with total equity of $917 million, up 9.2% from Dec 31, 2015.
As of Dec 31, 2016, cash and cash equivalents were $94.3 million, up 32% year over year. This was because borrowings increased 3.5% year over year to $1.78 billion.
Annualized return on average equity was a negative 7.9% compared with a return of 19.8% in the year-ago quarter.
Management Change
The company announced a management succession plan that is aimed to steer the company to profitability. Per the plan, Kevin Stevenson, the current president and chief administrative officer, will succeed Steve Fredrickson as the chief executive officer of the company. Stevenson will take office following the 2017 Annual Meeting of Stockholders, which will be held on Jun 1, 2017.
PRA Group, Inc. Price, Consensus and EPS Surprise
PRA Group, Inc. Price, Consensus and EPS Surprise | PRA Group, Inc. Quote
Zacks Rank and Stocks to Consider
PRA Group currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks include Financial Engines, Inc. , Houlihan Lokey, Inc. (HLI - Free Report) , Marathon Patent Group, Inc. (MARA - Free Report) . Each of these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Financial Engines reported a positive earnings surprise in three out of the last four quarters with an average beat of 2.34%.
Houlihan Lokey posted a positive earnings surprise in three out of the last four quarters with an average beat of 4.87%.
Marathon Patent posted a positive earnings surprise in two out of the last four quarters with an average beat of 8.45%.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1?
In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with
jaw-dropping growth. Each could go public in the coming months.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>