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PRA Group's (PRAA) Q1 Earnings Beat Estimates, Improve Y/Y

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PRA Group, Inc.’s (PRAA - Free Report) first-quarter 2021 earnings per share of $1.27 beat the Zacks Consensus Estimate of 75 cents by 69.3%. Moreover, the bottom line skyrocketed 202.4% year over year, primarily owing to an improved top line.

Also, revenues of $289 million were up 14.7% from the year-ago quarter, courtesy of higher changes in expected recoveries and other revenues.

Further, the top line surpassed the Zacks Consensus Estimate by 7.9%.
The company’s cash collection of $555.9 climbed 12% from the year-ago figure on the back of an increase in U.S. call center and other cash collections along with better Europe cash collections. However, the same was partly offset by a decline in U.S. legal and Americas Insolvency cash collections.

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 $2.1 million dipped 1.3% year over year.

The company’s portfolio income came in at $231.7 million  in the quarter under review, down 11.6% year over year.

Total operating expenses dropped 6.6% year over year to $178.7 million, mainly on lower legal collection costs.

Moreover, the same was offset by a surge in agency fees, primarily outside the United States.

Business Update

The company spent $159 million on finance receivables in the quarter under review.

Financial Update (as of Mar 31, 2021)

The company had total assets worth $4.3 billion, down 3.9% from the level at 2020 end.

PRA Group exited the quarter with total equity of $1.4 billion, up 2.2% from the level on Dec 31, 2020.

Cash and cash equivalents in the quarter under discussion were $92.8 million, down 14.6% from the level at 2020 end.

At the end of the first quarter, borrowings decreased 6% to $2.5 billion from the number at 2020 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 finance sector players that have reported first-quarter earnings so far, the bottom-line results of  American Express Company  (AXP - Free Report) , Synchrony Financial  (SYF - Free Report) and  Discover Financial Services  (DFS - Free Report) beat the respective Zacks Consensus Estimate.

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