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PRA Group's (PRAA) Q2 Earnings Beat Estimates, Slide Y/Y

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PRA Group, Inc.’s PRAA second-quarter 2021 earnings per share of $1.22 beat the Zacks Consensus Estimate of 76 cents by 60.5%, primarily owing to an improved top line. However, the bottom line dipped 3.2% year over year.

The company witnessed steep operating expenses in the quarter under review.

Revenues of $286 million were up 5.1% from the year-ago quarter’s level, courtesy of changes in expected recoveries.

The top line too surpassed the Zacks Consensus Estimate by 10.9%.

The company’s cash collection of $543.8 climbed 7% from the year-ago figure on the back of an increase in Europe cash collections and Other Americas & Australia Core cash collections. However, the same was partly offset by a decline in U.S. legal cash collections and U.S. call centers.

PRA Group, Inc. Price, Consensus and EPS Surprise

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 $2.4 million dropped 7% year over year.
The company’s portfolio income came in at $219 million in the quarter under review, down 11.7% year over year.

Total operating expenses were up 12.9% year over year to $181.4 million due to higher compensation and employee services, agency fees, outside fees and services, communication and other operating costs.

Business Update

The company spent $219.7 million on finance receivables in the quarter under review.

Financial Update (as of Jun 30, 2021)

The company had total assets worth $4.2 billion, down 4.3% from the level at 2020 end.

PRA Group exited the second quarter with total equity of $1.4 billion, up 7.4% from the level on Dec 31, 2020.

Cash and cash equivalents in the quarter under discussion were $76 million, down 30% from the level at 2020 end.

At the end of the second quarter, borrowings decreased 9.5% to $2.4 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 second-quarter earnings so far, the bottom-line results of American Express Company AXP, Synchrony Financial SYF and Discover Financial Services DFS beat the respective Zacks Consensus Estimate.

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Discover Financial Services (DFS) : Free Stock Analysis Report

American Express Company (AXP) : Free Stock Analysis Report

PRA Group, Inc. (PRAA) : Free Stock Analysis Report

Synchrony Financial (SYF) : Free Stock Analysis Report

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