PRA Group, Inc.’s (PRAA - Free Report) first-quarter 2020 earnings per share of 42 cents beat the Zacks Consensus Estimate by 35.5%. Moreover, the bottom line improved 23.5% year over year, primarily due to improved top-line growth.
Revenues of $252 million were up 2.4% from the year-ago quarter, courtesy of high portfolio income. Further, the top line surpassed the Zacks Consensus Estimate by 2.5%.
The company’s cash collection of $494.6 million climbed 7.2% from the figure reported in the first quarter on the back of higher contributions by Americas Core, Europe Core and Europe Insolvency.
Quarterly Operational Update
PRA Group’s fee income of $2.2 million plunged 65.3% year over year.
The company’s portfolio income came in at $262 million in the quarter under review, which compares favorably with income recognized on finance receivables of $238.8 million in the prior-year quarter.
Total operating expenses inched up 0.2% over year to $191.2 million, mainly on account of higher legal collection fees, outside fees and services, communication, rent and occupancy and other operating expenses.
The company spent $273.2 million on finance receivables in the quarter under review.
As of Mar 31, 2020, the company had total assets of $4.4 billion, down 1.7% from the level at 2019 end.
PRA Group exited the quarter with total equity of $1.1 billion, down 8.7% from the level on Dec 31, 2019.
Cash and cash equivalents in the quarter under discussion were $180 million, up 50.3% from the level at 2019 end.
In the quarter under review, borrowings inched up 0.7% to $2.8 billion from the number at 2019 end.
Zacks Rank and Performance of Other Players
PRA Group has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other players from the finance sector having reported first-quarter earnings so far, the bottom line of American Express Company (AXP - Free Report) and MarketAxess Holdings Inc. (MKTX - Free Report) beat estimates while that of Discover Financial Services (DFS - Free Report) missed the same.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>