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PRA Group (PRAA) Q2 Earnings Surpass Estimates, Soar Y/Y
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PRA Group, Inc.’s (PRAA - Free Report) second-quarter 2020 earnings per share of $1.26 beat the Zacks Consensus Estimate by 82.6%. Moreover, the bottom line skyrocketed 207.3% year over year, primarily owing to improved top-line growth.
Revenues of $272 million were also up 7.9% from the year-ago quarter, courtesy of portfolio income. Further, the top line surpassed the Zacks Consensus Estimate by 3.4%.
The company’s cash collection of $509.9 million climbed 8% from the year-ago figure on the back of higher contributions from Americas Core. Cash collections in the quarter were solid in the United States.
PRA Group’s fee income of $2.6 million dipped 2.5% year over year.
The company’s portfolio income came in at $248.3 million in the quarter under review, against income recognized on finance receivables of $249.2 million in the prior-year quarter.
Total operating expenses decreased 14.3% over year to $160.6 million, mainly owing lower legal collection fees amid the closure of courts in many European countries because of the COVID-19 pandemic. Moreover, lower compensation and employee benefits as a result of trimmed U.S. call center staff also contributed to this upside.
Business Update
The company spent $164.5 million on finance receivables in the quarter under review.
Financial Update
As of Jun 30, 2020, it had total assets worth $4.2 billion, down 5.1% from the level at 2019 end.
PRA Group exited the quarter with total equity of $1.1 billion, down 2.6% from the level on Dec 31, 2019.
Cash and cash equivalents in the quarter under discussion were $115.7 million, down 3.4% from the level at 2019 end.
At the end of the second quarter, borrowings decreased 8.1% to $2.6 billion from the number at 2019 end.
Of the other companies in the same space that already reported second-quarter earnings, the bottom-line results of American Express Company (AXP - Free Report) , Visa Inc. (V - Free Report) and Synchrony Financial (SYF - Free Report) beat the respective Zacks Consensus Estimate.
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Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
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PRA Group (PRAA) Q2 Earnings Surpass Estimates, Soar Y/Y
PRA Group, Inc.’s (PRAA - Free Report) second-quarter 2020 earnings per share of $1.26 beat the Zacks Consensus Estimate by 82.6%. Moreover, the bottom line skyrocketed 207.3% year over year, primarily owing to improved top-line growth.
Revenues of $272 million were also up 7.9% from the year-ago quarter, courtesy of portfolio income. Further, the top line surpassed the Zacks Consensus Estimate by 3.4%.
The company’s cash collection of $509.9 million climbed 8% from the year-ago figure on the back of higher contributions from Americas Core. Cash collections in the quarter were solid in the United States.
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 $2.6 million dipped 2.5% year over year.
The company’s portfolio income came in at $248.3 million in the quarter under review, against income recognized on finance receivables of $249.2 million in the prior-year quarter.
Total operating expenses decreased 14.3% over year to $160.6 million, mainly owing lower legal collection fees amid the closure of courts in many European countries because of the COVID-19 pandemic. Moreover, lower compensation and employee benefits as a result of trimmed U.S. call center staff also contributed to this upside.
Business Update
The company spent $164.5 million on finance receivables in the quarter under review.
Financial Update
As of Jun 30, 2020, it had total assets worth $4.2 billion, down 5.1% from the level at 2019 end.
PRA Group exited the quarter with total equity of $1.1 billion, down 2.6% from the level on Dec 31, 2019.
Cash and cash equivalents in the quarter under discussion were $115.7 million, down 3.4% from the level at 2019 end.
At the end of the second quarter, borrowings decreased 8.1% to $2.6 billion from the number at 2019 end.
Zacks Rank and Performance of Other Players
PRA Group currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of the other companies in the same space that already reported second-quarter earnings, the bottom-line results of American Express Company (AXP - Free Report) , Visa Inc. (V - Free Report) and Synchrony Financial (SYF - Free Report) beat the respective Zacks Consensus Estimate.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
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