PRA Group (PRAA) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to loss of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 44.12%. A quarter ago, it was expected that this debt collector would post earnings of $0.05 per share when it actually produced earnings of $0.54, delivering a surprise of 980%.Over the last four quarters, the company has s ...

Core Insights - PRA Group, Inc. reported strong financial results for Q3 2024, achieving a net income of $27.2 million, or diluted earnings per share of $0.69, which includes a tax benefit of $7.7 million [2][3] - The company is on track to meet its financial and operational targets for 2024 and has announced new targets for 2025, focusing on growth and profitability [1][10] Financial Performance - Total cash collections for Q3 2024 increased by 13.7% year-over-year to $477.1 million, driven by higher collections in both the U.S. and Europe [4][5] - Total portfolio revenue for Q3 2024 rose by 30.5% to $276.7 million compared to $212.1 million in Q3 2023 [4][5] - Adjusted EBITDA for the 12 months ending September 30, 2024, was reported at $1.1 billion [2] Portfolio Acquisitions - The company invested $350 million in portfolio purchases during Q3 2024, contributing to a record estimated remaining collections (ERC) of $7.3 billion [3][8] - Forward flow commitments of $491.1 million are in place for the next 12 months, with $406.3 million in the Americas and Australia and $84.8 million in Europe [8][10] Operational Efficiency - The cash efficiency ratio for Q3 2024 was reported at 60.1% [2] - Operating expenses increased by 10.4% to $191.5 million, primarily due to higher legal collection costs and compensation expenses [6][7] Future Outlook - The company aims for portfolio investment levels to exceed $1.0 billion in 2025, with cash collections growth projected at 8% to 10% [10] - The return on average tangible equity is expected to improve to over 8% in 2024, up from a previous range of 6% to 8% [10]

Core Points - PRA Group, Inc. amended and extended its North American and UK credit agreements, totaling $2.3 billion, for five years to October 2029 with unchanged pricing [1][2] - The interest margin remains at 2.25% for the North American Credit Agreement and 2.75% for the UK Credit Agreement [1] - The company expresses gratitude for the support from existing and new lenders, highlighting the financial flexibility this provides for future growth [2] Company Overview - PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, helping to return capital to banks and creditors to enhance financial services for consumers in the Americas, Europe, and Australia [3]

Core Viewpoint - PRA Group, Inc. is expected to report strong year-over-year growth in earnings and revenues for Q3 2024, with earnings estimated at 34 cents per share and revenues at $264.48 million, reflecting a 209.7% and 22.2% increase respectively [1][2]. Financial Performance - The earnings estimate for Q3 has remained stable over the past 60 days, indicating confidence in the company's performance [2]. - For the current year, revenues are projected at $1.07 billion, representing a 33.8% year-over-year increase, while EPS is expected to reach $1.33, a jump of 162.4% [2]. Historical Performance - PRA Group has consistently beaten consensus earnings estimates in the past four quarters, with an average surprise of 299.4% [3]. Earnings Prediction - The current model does not predict an earnings beat for PRA Group this time, as the Earnings ESP is 0.00% and the Zacks Rank is 2 (Buy) [4]. Q3 Factors - Improved cash collections, higher portfolio income, and solid purchasing activity are expected to contribute positively to Q3 results, with total cash collections estimated to grow by 15.1% year-over-year [6]. - Portfolio income is projected at $218.3 million, indicating a 14.9% increase, while expected recoveries are estimated at $37 million, up 67% year-over-year [7]. Revenue Challenges - Other revenues are expected to decline by 46.2% year-over-year, with a consensus mark of $2.3 million [8]. Operating Expenses - Total operating expenses are anticipated to rise due to increased compensation, agency fees, and other costs, which may impact margins and earnings potential [9]. Stock Performance - PRA Group's stock has decreased by 23.7% year-to-date, underperforming the industry average increase of 9.2% and the S&P 500's rise of 22.2% [10]. Valuation - The company's current valuation is relatively low, trading at 10.54X forward 12-month earnings compared to the industry average of 15.04X, suggesting potential value for investors [12]. Investment Outlook - Rising portfolio income and improving cash collections may support top-line growth, while the focus on efficiency could enhance margins [14][15]. - Current shareholders may consider holding, while prospective investors might view this as a buying opportunity ahead of the upcoming earnings report [15].

NORFOLK, Va., Oct. 14, 2024 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, will report its third quarter 2024 results after market close on Monday, November 4, 2024, followed by a webcast and conference call at 5 p.m. E.T. To listen to PRA Group's webcast and view the corresponding slides, visit https://ir.pragroup.com/events-andpresentations. To listen by phone on November 4, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. a ...

Core Viewpoint - The market is optimistic about the beginning of the rate cut cycle, which is beneficial for the stock market and investors seeking strong earnings records [1] Company Overview - PRA Group (PRAA) is highlighted as a financial and business services company that specializes in the purchase, collection, and management of nonperforming loan portfolios globally [2] Earnings Estimates - Analysts have increased their earnings estimates for PRA Group, with the current year consensus rising from $0.70 to $1.33 and next year's estimate increasing from $1.72 to $2.01, supported by revenue growth projections of 33% this year and 6% next year [3] Stock Performance Analysis - There is a notable divergence between earnings estimates and the stock price, with the stock price not reflecting the positive earnings trends despite consistent earnings beats [4] - The stock was trading around $50 at the beginning of 2022 but has since dropped to less than half that amount, indicating potential for price recovery if earnings continue to improve [5]

Core Viewpoint - PRA Group, Inc. is positioned for growth due to increased portfolio purchases, improved pricing in the U.S., and enhanced cash collections [1][5] Company Overview - PRA Group is a global financial services company with a market cap of $797.4 million, focusing on the acquisition, collection, and management of nonperforming loans [2] - The company's shares have increased by 2% over the past three months, while the industry has grown by 7.6% [2] Financial Performance - The Zacks Consensus Estimate for PRA Group's 2024 earnings indicates a more than onefold improvement, with upward revisions reflecting positive analyst sentiment [3] - The consensus estimate for 2024 revenues is $1.1 billion, representing a 33.8% year-over-year increase [4] Growth Prospects - PRA Group is expected to benefit from improving portfolio supply and pricing in the U.S. amid credit normalization, which is a key factor for anticipated growth [5] - Rising credit card balances and higher delinquency rates are expected to increase supply in the U.S., while cash collection growth in Europe is also promising [6] Portfolio Acquisitions - In Q2, PRA Group acquired non-performing loan portfolios totaling $379.4 million, with total purchases in 2023 reaching $1.2 billion, a 36% increase year-over-year [7] Operational Efficiency - The company anticipates a cash efficiency ratio of around 60% in 2024, up from 58% in 2023, indicating improved cash management [8] Valuation Metrics - PRA Group's forward 12-month price-to-earnings ratio is 11.21X, lower than the industry average of 13.66X, suggesting the stock is more affordable [8] Challenges - The company's total debt to total capital ratio stands at 72.9%, significantly higher than the industry average of 56.3%, leading to increased interest expenses [9] - Rising legal collection costs and agency fees have negatively impacted margins, with increases of 36.3% and 16.2% year-over-year, respectively, in the first half of 2024 [9]

Core Insights - PRA Group, Inc. has appointed Adrian Murphy as the global chief data and analytics officer, effective September 16, 2024 [1][2] - Murphy will report to the President and CEO, Vik Atal, and will be part of the senior leadership team, focusing on developing analytic solutions to drive business growth [2] - Murphy brings nearly three decades of experience in the financial services industry, having previously worked at McKinsey & Company and Oliver Wyman [3] Company Overview - PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, helping to return capital to banks and creditors, thereby expanding financial services for consumers in the Americas, Europe, and Australia [5] - The company employs thousands of individuals worldwide and collaborates with customers to assist them in resolving their debt [5]

Core Viewpoint - PRA Group reported strong Q2 2024 earnings, significantly exceeding expectations, driven by improved cash collections and portfolio income, despite elevated expenses [2][3][5]. Financial Performance - Q2 2024 earnings per share were 54 cents, surpassing the Zacks Consensus Estimate of 5 cents, compared to a loss of 10 cents per share in the prior-year quarter [2]. - Total revenues increased by 35.8% year over year to $284.2 million, exceeding the consensus mark by 16% [2]. - Cash collections reached $473.9 million, up 13% year over year, and also surpassed the Zacks Consensus Estimate of $469.2 million [4]. - Portfolio income rose 13.6% year over year to $209.3 million, beating the consensus estimate of $205.8 million [4]. - Total operating expenses increased by 19.1% year over year to $195 million, driven by higher compensation, legal collection costs, and other operating expenses [5]. - Net income was $25.1 million, a nearly 22-fold increase year over year [5]. Operational Highlights - The company purchased nonperforming loan portfolios worth $379.4 million, reflecting a 15.7% year-over-year increase [5]. - Estimated remaining collections (ERC) stood at $6.8 billion at the end of Q2 2024 [5]. Financial Position - As of June 30, 2024, cash and cash equivalents were $118.9 million, a 5.6% increase from the end of 2023 [6]. - Total assets increased by 3% to $4.7 billion, while borrowings rose by 6.8% to $3.1 billion [6]. - Total equity decreased by 2.9% to $1.2 billion [6]. Guidance and Outlook - For 2024, the company anticipates solid portfolio investment levels and double-digit growth in cash collections [7]. - The effective tax rate is expected to be in the low to mid 20% range, with a cash efficiency ratio projected around 60% [8]. - The company expects to collect an ERC balance of $1.6 billion within the next 12 months [8]. Market Sentiment - Since the earnings release, there has been a 45.71% upward shift in consensus estimates [9]. - PRA Group holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [11].

Core Viewpoint - PRA Group (PRAA) shares have increased by 4.2% recently, closing at $22.06, with analysts suggesting a potential upside to a mean price target of $28.33, indicating a 28.4% increase from the current price [1] Price Targets and Analyst Estimates - The mean price target consists of three short-term estimates with a standard deviation of $4.51, where the lowest estimate is $24 (an 8.8% increase) and the highest is $33 (a 49.6% increase) [2] - A low standard deviation among price targets suggests a strong consensus among analysts regarding the stock's price direction, which can serve as a basis for further research [7] Earnings Estimates and Analyst Agreement - Analysts have shown increasing optimism about PRAA's earnings, as indicated by a strong agreement in revising EPS estimates higher, which correlates with potential stock price increases [9] - Over the past 30 days, the Zacks Consensus Estimate for the current year has risen by 90.9%, with three estimates moving higher and no negative revisions [10] Zacks Rank and Investment Potential - PRAA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside [11]