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PRA Group (PRAA) Q1 Earnings and Revenues Beat Estimates

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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.

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 $2.2 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.

Business Update

The company spent $273.2 million on finance receivables in the quarter under review.

Financial Update

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.

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