Back to top

Image: Bigstock

PRA Group's (PRAA) Q2 Earnings Beat Estimates, Slide Y/Y

Read MoreHide Full Article

PRA Group, Inc.’s (PRAA - Free Report) second-quarter 2021 earnings per share of $1.22 beat the Zacks Consensus Estimate of 76 cents by 60.5%, primarily owing to an improved top line. However, the bottom line dipped 3.2% year over year.

The company witnessed steep operating expenses in the quarter under review.

Revenues of $286 million were up 5.1% from the year-ago quarter’s level, courtesy of changes in expected recoveries.

The top line too surpassed the Zacks Consensus Estimate by 10.9%.

The company’s cash collection of $543.8 climbed 7% from the year-ago figure on the back of an increase in Europe cash collections and Other Americas & Australia Core cash collections. However, the same was partly offset by a decline in U.S. legal cash collections and U.S. call centers.

PRA Group, Inc. Price, Consensus and EPS Surprise

PRA Group, Inc. Price, Consensus and EPS Surprise

PRA Group, Inc. price-consensus-eps-surprise-chart | PRA Group, Inc. Quote

Quarterly Operational Update

PRA Group’s fee income of $2.4 million dropped 7% year over year.
The company’s portfolio income came in at $219 million in the quarter under review, down 11.7% year over year.

Total operating expenses were up 12.9% year over year to $181.4 million due to higher compensation and employee services, agency fees, outside fees and services, communication and other operating costs.

Business Update

The company spent $219.7 million on finance receivables in the quarter under review.

Financial Update (as of Jun 30, 2021)

The company had total assets worth $4.2 billion, down 4.3% from the level at 2020 end.

PRA Group exited the second quarter with total equity of $1.4 billion, up 7.4% from the level on Dec 31, 2020.

Cash and cash equivalents in the quarter under discussion were $76 million, down 30% from the level at 2020 end.

At the end of the second quarter, borrowings decreased 9.5% to $2.4 billion from the number at 2020 end.

Zacks Rank and Performance of Other Players

PRA Group currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Of the finance sector players that have reported second-quarter earnings so far, the bottom-line results of  American Express Company  (AXP - Free Report) , Synchrony Financial   (SYF - Free Report) and  Discover Financial Services  (DFS - Free Report) beat the respective Zacks Consensus Estimate.

Published in