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