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Discover Financial Services (DFS) - free report >>
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PRA Group (PRAA) Q4 Earnings Beat Estimates, Improve Y/Y
PRA Group, Inc.’s (PRAA - Free Report) fourth-quarter 2021 earnings per share of 79 cents beat the Zacks Consensus Estimate and also increased year over year by 21.5% owing to lower expenses.
Revenues of $256.9 million were down 6.2% from the year-ago quarter’s level due to lower portfolio income. However, the top line surpassed the Zacks Consensus Estimate by 2.4%.
PRAA’s cash collection of $473.7 million decreased 1.7% from the year-ago figure due to a decrease in U.S. call center and other cash collections as well as Brazil cash 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 $3.8 million increased 32% year over year.
PRAA’s portfolio income came in at $211.6 million during the quarter under review, down 9.4% year over year.
Total operating expenses were down 5.5% year over year to $174.48 million on lower compensation and employee services, legal collection costs, agency fees, outside fees and services, depreciation and amortization.
Business Update
PRA Group purchased $201.7 million of nonperforming loan portfolios.
Share Repurchase Update
PRAA bought back shares worth $139 million in the fourth quarter of 2021. Management also authorized a new $150-million program upon completion of the previous program.
2021 Update
PRAA delivered cash collections of $2.1 billion for the full year. In 2021, this financial Miscellaneous services company came up with revenues of $1.1 billion, up 2.8% year over year.
Financial Update (as of Dec 31, 2021)
PRAA had total assets worth $4.3 billion, down 1.9% from the level at 2020 end.
PRA Group exited the fourth quarter with total equity of $1.3 billion, down 3.5% from the level on Dec 31, 2020.
Cash and cash equivalents in the quarter under discussion were $87.5 million, down 19.4% from the level at 2020 end.
At the end of the fourth quarter, borrowings decreased 2% to $2.6 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 fourth-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.