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

PRA Group Inc. 's PRAA second-quarter 2018 earnings per share of 43 cents beat the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line soared 72% from 25 cents in the year-ago quarter, majorly driven by higher cash collections, supply and focused operations in Europe.

PRA Group, Inc. Price and EPS Surprise

PRA Group, Inc. Price and EPS Surprise | PRA Group, Inc. Quote

The company's reported net income plunged 54.4% year over year to 43 cents per share in the quarter under review.

PRA Group's total revenues were $222 million, up 8.9% from the prior-year quarter's level. The top line also surpassed the Zacks Consensus Estimate by 3.7%.

Quarterly Operational Update

PRA Group's net finance receivable revenues of $219 million increased 12.9% over the year-earlier quarter's figure owing to yield improvements in certain pools of Europe Core and Americas Core along with a record portfolio investment during 2017 in Americas Core and Americas Insolvency.

Fee income of $2.3 million surged 63% year over year.

Total operating expenses rose 7.3% year over year to $163.3 million. This downside was induced by higher compensation and employee services from increased U.S. collection staff.

In the reported quarter, the company generated cash collections of $406 million, up 8.5% from the amount recorded in comparable period last year. This upside was driven by a significant U.S. staffing and higher portfolio purchase in the Americas.

Financial Update

As of Jun 30, 2018, the company had total assets worth $3.5 billion, up 2.8% from the year-end 2017 tally.

PRA Group exited the second quarter with total equity of $1.1 billion, flat with the year-end 2017 level.

Cash and cash equivalents in the quarter under discussion were $71 million, down 41% from the figure at 2017 end.

In the second quarter, borrowings dipped 1.7% to $2.13 billion.

The company invested $221.4 million in new finance receivables in the quarter under review.

Zacks Rank and Performance of Other Players

PRA Group has a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Among other financial miscellaneous service providers having reported second-quarter earnings so far, the bottom line of Synchrony Financial SYF , American Express Company AXP and MoneyGram International Inc. MGI beat the respective Zacks Consensus Estimate.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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