PRA Group Inc.’s (PRAA - Free Report) second-quarter 2018 earnings per share of 43 cents beat the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line soared 72% from 25 cents in the year-ago quarter, majorly driven by higher cash collections, supply and focused operations in Europe.
The company’s reported net income plunged 54.4% year over year to 43 cents per share in the quarter under review.
PRA Group’s total revenues were $222 million, up 8.9% from the prior-year quarter’s level. The top line also surpassed the Zacks Consensus Estimate by 3.7%.
Quarterly Operational Update
PRA Group’s net finance receivable revenues of $219 million increased 12.9% over the year-earlier quarter’s figure owing to yield improvements in certain pools of Europe Core and Americas Core along with a record portfolio investment during 2017 in Americas Core and Americas Insolvency.
Fee income of $2.3 million surged 63% year over year.
Total operating expenses rose 7.3% year over year to $163.3 million. This downside was induced by higher compensation and employee services from increased U.S. collection staff.
In the reported quarter, the company generated cash collections of $406 million, up 8.5% from the amount recorded in comparable period last year. This upside was driven by a significant U.S. staffing and higher portfolio purchase in the Americas.
As of Jun 30, 2018, the company had total assets worth $3.5 billion, up 2.8% from the year-end 2017 tally.
PRA Group exited the second quarter with total equity of $1.1 billion, flat with the year-end 2017 level.
Cash and cash equivalents in the quarter under discussion were $71 million, down 41% from the figure at 2017 end.
In the second quarter, borrowings dipped 1.7% to $2.13 billion.
The company invested $221.4 million in new finance receivables in the quarter under review.
Zacks Rank and Performance of Other Players
PRA Group has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other financial miscellaneous service providers having reported second-quarter earnings so far, the bottom line of Synchrony Financial (SYF - Free Report
) , American Express Company (AXP - Free Report
) and MoneyGram International Inc. (MGI - Free Report
) beat the respective Zacks Consensus Estimate.
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