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PRA Group (PRAA) Q3 Earnings Miss Estimates, Tumble Y/Y
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PRA Group, Inc.’s (PRAA - Free Report) third-quarter 2021 earnings per share of 76 cents missed the Zacks Consensus Estimate of 81 cents by 6.2% due to lower revenues. However, the bottom line decreased 17.4% year over year.
The company witnessed steep operating expenses in the quarter under review. Revenues of $263.7 million were down 1.5% from the year-ago quarter’s level due to lower portfolio income. However, the top line surpassed the Zacks Consensus Estimate by 2.6%.
The company’s cash collection of $488.4 million decreased 6% from the year-ago figure due to return to more normal seasonal trends in the United States along with lower volume on accounts in the U.S. legal channel during the current year.
PRA Group’s fee income of $6.2 million increased 213.9% year over year.
The company’s portfolio income came in at $212.9 million during the quarter under review, down 11.4% year over year.
Total operating expenses were up 3.9% year over year to $186.1 million due to higher compensation and employee services, agency fees, outside fees and services, communication, rent and occupancy and other operating costs.
Business Update
The company spent $391.9 million on finance receivables in the quarter under review.
Share Repurchase Update
The company bought back shares worth $74 million in the third quarter of 2021. Management also added $80 million to its share buyback plan, raising the authorization to $230 million.
Financial Update (as of Sep 30, 2021)
The company had total assets worth $4.3 billion, down 2.7% from the level at 2020 end.
PRA Group exited the third quarter with total equity of $1.4 billion, up 3.6% from the level on Dec 31, 2020.
Cash and cash equivalents in the quarter under discussion were $56.5 million, down 47.9% from the level at 2020 end.
At the end of the third quarter, borrowings decreased 5.3% to $2.5 billion from the number at 2020 end.
Of the finance sector players that have reported third-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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PRA Group (PRAA) Q3 Earnings Miss Estimates, Tumble Y/Y
PRA Group, Inc.’s (PRAA - Free Report) third-quarter 2021 earnings per share of 76 cents missed the Zacks Consensus Estimate of 81 cents by 6.2% due to lower revenues. However, the bottom line decreased 17.4% year over year.
The company witnessed steep operating expenses in the quarter under review.
Revenues of $263.7 million were down 1.5% from the year-ago quarter’s level due to lower portfolio income. However, the top line surpassed the Zacks Consensus Estimate by 2.6%.
The company’s cash collection of $488.4 million decreased 6% from the year-ago figure due to return to more normal seasonal trends in the United States along with lower volume on accounts in the U.S. legal channel during the current year.
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 $6.2 million increased 213.9% year over year.
The company’s portfolio income came in at $212.9 million during the quarter under review, down 11.4% year over year.
Total operating expenses were up 3.9% year over year to $186.1 million due to higher compensation and employee services, agency fees, outside fees and services, communication, rent and occupancy and other operating costs.
Business Update
The company spent $391.9 million on finance receivables in the quarter under review.
Share Repurchase Update
The company bought back shares worth $74 million in the third quarter of 2021. Management also added $80 million to its share buyback plan, raising the authorization to $230 million.
Financial Update (as of Sep 30, 2021)
The company had total assets worth $4.3 billion, down 2.7% from the level at 2020 end.
PRA Group exited the third quarter with total equity of $1.4 billion, up 3.6% from the level on Dec 31, 2020.
Cash and cash equivalents in the quarter under discussion were $56.5 million, down 47.9% from the level at 2020 end.
At the end of the third quarter, borrowings decreased 5.3% 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 third-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.