PRA Group Inc.’s PRAA second-quarter 2019 earnings per share of 41 cents beat the Zacks Consensus Estimate by 10.8%, mainly attributable to growth in revenues. However, the bottom line declined 4.7% year over year.
Meanwhile, its total revenues were $252 million, up 13.5% from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate by 2.9% on the back of higher finance receivables of the company.
The company witnessed cash collection of $470.3 million, which rose 16% from the figure reported in second-quarter 2018 on the back of U.S. legal cash collections and U.S. call center plus other such collections.
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 $2.7 million increased 15.6% year over year.
The company’s finance receivables during the reported period grew 13.8% year over year to $249.2 million, primarily because of the Americas Core portfolio investment in 2018, certain purchases made in Europe Core and yield raises in Core.
Total operating expenses increased 14.8% year over year to $187.5 million. This deterioration was due to higher legal collection costs and fees plus higher agency fees.
The company spent $289.1 million on finance receivables in the quarter under review.
As of Jun 30, 2019, the company had total assets of $4.1 billion, up 6.5% from the level at 2018 end.
PRA Group exited the quarter with total equity of $1.1 billion, up 2.4% from the level on Dec 31, 2018.
Cash and cash equivalents in the quarter under discussion were $105 million, up 6.9% from the year-end 2018
In the quarter under consideration, borrowings increased 5.9% to $2.6 billion.
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 second-quarter earnings so far, the bottom-line results of Synchrony Financial SYF and Discover Financial Services DFS beat the respective Zacks Consensus Estimate while that of MarketAxess Holdings Inc. MKTX missed the same.
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