PRA Group Inc.’s PRAA first-quarter 2019 earnings per share of 34 cents missed the Zacks Consensus Estimate by 5.6%. Moreover, the bottom line declined 27.7% year over year due to a rise in expenses.
The company’s total revenues were $246 million, up 10.3% from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate by 3.8% on the back of higher finance receivables.
It witnessed cash collection of $461.2 million, 8% above the 2018's first-quarter level. This was driven by an increase in U.S. legal cash collections as well as a rise in U.S. call center and other cash collections.
Effective tax rate for the quarter under review was 18.6%.
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 $7 million increased 27.3% year over year.
The company’s finance receivables during the reported quarter grew 9% year over year to $238.8 million, primarily owing to Americas Core portfolio purchases made last year and the Europe Core portfolio purchases in fourth-quarter 2018.
Total operating expenses increased 12.6% year over year. This deterioration was due to higher legal collection costs and fees plus a rise in agency fees.
As of Mar 31, 2019, the company has total assets of $4.1 billion, up 5% from the level at 2018 end.
PRA Group exited the quarter with total equity of $1.1 billion, up 0.2 % from the level on Dec 31, 2018.
Cash and cash equivalents in the quarter under discussion were $102 million, up 3.5% from the figure as of 2018 end.
In the quarter under consideration, borrowings increased 4.6% year over year.
Zacks Rank and Performance of Other Players
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 players from the finance sector having reported first-quarter earnings so far, the bottom-line numbers of Synchrony Financial SYF, Discover Financial Services DFS and Enova International, Inc. ENVA beat the respective Zacks Consensus Estimate.
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