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PRA Group's (PRAA) Q3 Earnings Beat Estimates, Rise Y/Y

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PRA Group Inc.’s (PRAA - Free Report) third-quarter 2019 earnings per share of 55 cents beat the Zacks Consensus Estimate by 17%, mainly attributable to growth in revenues. Moreover, the bottom line increased 150% year over year.

Revenues totaled $250 million, up 10.6% from the year-ago quarter. However, the top line missed the Zacks Consensus Estimate by 2%.

The company witnessed cash collection of $453.2 million, which rose 16% from the figure reported in third-quarter 2018 on the back of increase in U.S. legal collections, Europe Core collections and U.S. call center and other cash collections.

PRA Group, Inc. Price, Consensus and EPS Surprise

Quarterly Operational Update

PRA Group’s fee income of $2.4 million decreased 6.6% year over year.

The company’s income recognized on finance receivables during the reported quarter grew 11% year over year to $247.5 million.

Total operating expenses increased 4.4% year over year to $181.2 million. The increase was due to higher legal collection fees, legal collection costs, agency fees, outside fees and services, communication, rent and occupancy and other operating expenses.

Business Update

The company spent $279 million on finance receivables in the quarter under review.

Financial Update

As of Sep 30, 2019, the company had total assets of $4.1 billion, up 5.3% from the level at 2018 end.

PRA Group exited the quarter with total equity of $1.1 billion, up 2% from the level on Dec 31, 2018.

Cash and cash equivalents in the quarter under discussion were $90 million, down 8.8% from the year-end 2018.

In the quarter under review, borrowings increased 3.8% to $2.6 billion from year-end 2018.

Zacks Rank

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

Other Releases From the Finance Sector

Among finance sector players who have already reported third-quarter earnings, earnings of Global Life Inc. (GL - Free Report) , Discover Financial Services (DFS - Free Report) and Synchrony Financial (SYF - Free Report) topped the respective Zacks Consensus Estimate.

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