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PRA Group's (PRAA) Q4 Earnings Miss Estimates, Rise Y/Y
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PRA Group Inc.’s (PRAA - Free Report) fourth-quarter 2017 earnings per share of 36 cents missed the Zacks Consensus Estimate of 37 cents by 2.7%. The bottom line, however, rose 9% from 33 cents in the year-ago quarter on higher revenues.
The company reported net income of $1.92 per share in the fourth quarter against net loss of 38 cents in the prior-year quarter.
PRA Group’s total revenues were $205.7 million, up 32% year over year. The top line also surpassed the Zacks Consensus Estimate by 5.1%.
The company’s fourth-quarter results were impacted by net after-tax benefit of $73.2 million due to the Tax Cuts and Jobs Act, pre-tax expense of $1.7 million from the impairment of a legacy PRA Group Europe passive investment and after-tax expense of $2.0 million related to redeemable non-controlling interest in a Polish securitization fund.
Full-Year Updates
The company reported net income of $3.54 per share for 2017, up 93% year over year.
PRA Group’s total revenues came in at $813.6 million in 2017, down 2% year over year.
Quarterly Operational Update
PRA Group’s net finance receivable revenues of $198.2 million soared 50% over the year-ago quarter owing to an outsized allowance charge in the previous-year quarter. Net finance receivable revenues also increased on the back of significant portfolio investment and yield increases on certain pools.
Fee income of $6 million plunged 71% primarily due to the sale of two fee-based subsidiaries earlier in the year.
Total operating expenses inched up 1.5% year over year to $150.5 million. This deterioration was largely due to higher expenses related to compensation and employee services plus other operating expenses.
In the quarter under review, the company reported cash collections of $376.3 million, up 8% from the prior-year quarter.
Among other insurers that have reported fourth-quarter earnings so far, the bottom line of Brown & Brown, Inc. (BRO - Free Report) , MGIC Investment Corporation (MTG - Free Report) and The Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate.
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PRA Group's (PRAA) Q4 Earnings Miss Estimates, Rise Y/Y
PRA Group Inc.’s (PRAA - Free Report) fourth-quarter 2017 earnings per share of 36 cents missed the Zacks Consensus Estimate of 37 cents by 2.7%. The bottom line, however, rose 9% from 33 cents in the year-ago quarter on higher revenues.
The company reported net income of $1.92 per share in the fourth quarter against net loss of 38 cents in the prior-year quarter.
PRA Group’s total revenues were $205.7 million, up 32% year over year. The top line also surpassed the Zacks Consensus Estimate by 5.1%.
The company’s fourth-quarter results were impacted by net after-tax benefit of $73.2 million due to the Tax Cuts and Jobs Act, pre-tax expense of $1.7 million from the impairment of a legacy PRA Group Europe passive investment and after-tax expense of $2.0 million related to redeemable non-controlling interest in a Polish securitization fund.
Full-Year Updates
The company reported net income of $3.54 per share for 2017, up 93% year over year.
PRA Group’s total revenues came in at $813.6 million in 2017, down 2% year over year.
Quarterly Operational Update
PRA Group’s net finance receivable revenues of $198.2 million soared 50% over the year-ago quarter owing to an outsized allowance charge in the previous-year quarter. Net finance receivable revenues also increased on the back of significant portfolio investment and yield increases on certain pools.
Fee income of $6 million plunged 71% primarily due to the sale of two fee-based subsidiaries earlier in the year.
Total operating expenses inched up 1.5% year over year to $150.5 million. This deterioration was largely due to higher expenses related to compensation and employee services plus other operating expenses.
In the quarter under review, the company reported cash collections of $376.3 million, up 8% from the prior-year quarter.
PRA Group, Inc. Price, Consensus and EPS Surprise
PRA Group, Inc. Price, Consensus and EPS Surprise | PRA Group, Inc. Quote
Financial Update
As of Dec 31, 2017, PRA Group had total assets worth $3.7 billion, up 17% from year-end 2016.
The company exited the quarter with total equity of $1.1 billion, up 24% from Dec 31, 2016.
As of Dec 31, 2017, cash and cash equivalents were $120.5 million, up 28% from year-end 2016.
In the reported quarter, borrowings increased 22% to $2.2 billion.
The company invested $374.6 million in new finance receivables in the fourth quarter, up 87% year over year.
Zacks Rank and Performance of Other Insurers
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 insurers that have reported fourth-quarter earnings so far, the bottom line of Brown & Brown, Inc. (BRO - Free Report) , MGIC Investment Corporation (MTG - Free Report) and The Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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