Shares of PRA Group (PRAA) have gained 4.2% over the past four weeks to close the last trading session at $22.06, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $28.33 indicates a potential upside of 28.4%. The mean estimate comprises three short-term price targets with a standard deviation of $4.51. While the lowest estimate of $24 indicates an 8.8% increase from the current p ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

PRA Group, Inc. (PRAA) reported second-quarter 2024 earnings per share of 54 cents, which significantly outpaced the Zacks Consensus Estimate of 5 cents. A loss of 10 cents per share was incurred in the prior-year quarter. Total revenues climbed 35.8% year over year to $284.2 million. The top line surpassed the consensus mark by 16%. The quarterly results were aided by improved cash collections, higher portfolio income and solid purchasing activity. However, the upside was partly offset by an elevated expen ...

Financial Performance - Portfolio income increased by 14% from $184 million in Q2 2023 to $209 million in Q2 2024[17] - Total revenues increased by 19% from $232 million in Q2 2023 to $284 million in Q2 2024[17] - Net income attributable to PRA Group increased significantly from a loss of $4 million in Q2 2023 to a profit of $22 million in Q2 2024[18] - Cash collections increased by 13% year-over-year[21] Portfolio Investments and ERC - Portfolio investments totaled $379 million, up 16% year-over-year[10] - Estimated Remaining Collections (ERC) increased by 15% year-over-year to $68 billion[25] Expenses and Debt - Interest expense, net increased by 29% from $43 million in Q2 2023 to $55 million in Q2 2024[17] - The company intends to borrow $298 million under North American Revolving Credit Facility on or about September 1, 2024, to redeem Senior Notes due 2025[31] Operational Efficiency - Over 25% of collectors supporting the U S business are now based offshore[6] - The company is targeting a cash efficiency ratio of approximately 60% in 2024[32]

PRA Group, Inc. (NASDAQ:PRAA) Q2 2024 Earnings Conference Call August 5, 2024 5:00 PM ET Company Participants Najim Mostamand - Vice President, Investor Relations Vikram Atal - President and Chief Executive Officer Rakesh Sehgal - Executive Vice President and Chief Financial Officer Conference Call Participants David Scharf - Citizens JMP Mark Hughes - Truist Sean-Paul Adams - Raymond James Operator Good evening and welcome to PRA Group’s Second Quarter 2024 Conference Call. All participants will be in a l ...

Financial Performance - Net income for Q2 2024 was $21.5 million, with diluted earnings per share of $0.54, a significant improvement from a net loss of $3.8 million in Q2 2023[1] - Total revenues for Q2 2024 reached $284,229,000, a 36% increase from $209,236,000 in Q2 2023[13] - Net income attributable to PRA Group, Inc. was $21,516,000 in Q2 2024, compared to a net loss of $3,804,000 in Q2 2023[13] - Total revenue for PRA Group in 2023 was $22,907.6 million, with a significant increase from $14,494.2 million in 2022, representing a growth of approximately 58.5%[20] - Adjusted EBITDA for the last twelve months ended June 30, 2024, was $1,065 million, compared to $1,007 million for the year ended December 31, 2023, indicating a year-over-year increase of about 5.8%[20] - The net income attributable to PRA Group, Inc. for the year ended December 31, 2023, was a loss of $83 million, reflecting a decline from the previous year[20] Cash Collections and Revenue Growth - Total cash collections in Q2 2024 increased by 13.0% year-over-year to $473.9 million, driven by higher collections in both the U.S. and Europe[2] - Total portfolio revenue for Q2 2024 rose by 37.6% to $282.6 million compared to $205.4 million in Q2 2023[2] - The company expects to achieve double-digit cash collections growth and maintain a cash efficiency ratio of approximately 60% for the full year 2024[8] - The company anticipates continued growth in cash collections and portfolio performance across all regions in the upcoming quarters[17] Operating Expenses and Financial Health - Operating expenses in Q2 2024 increased by $31.3 million, or 19.1%, to $195.0 million, primarily due to higher legal collection costs and compensation expenses[4] - Interest expense in Q2 2024 was $55.4 million, an increase of 28.7% compared to $43.0 million in Q2 2023, reflecting higher interest rates and debt levels[5] - Total operating expenses for Q2 2024 were $195,007,000, compared to $163,675,000 in Q2 2023, reflecting a 19% increase[13] - Total stockholders' equity decreased to $1,145,463,000 as of June 30, 2024, down from $1,167,112,000 at the end of 2023[14] Asset and Portfolio Management - Total assets increased to $4,661,940,000 as of June 30, 2024, up from $4,525,354,000 at the end of 2023[14] - Finance receivables, net, rose to $3,820,186,000, an increase from $3,656,598,000 at the end of 2023[14] - The company purchased $379.4 million in nonperforming loan portfolios in Q2 2024, marking the third highest quarterly purchase level in the past five years[6] - Total estimated collections for the Americas and Australia core from 1996 to 2013 amount to $5,745,296, with a current purchase price multiple of 297%[16] Regional Performance - The Americas and Australia segment generated cash collections of $572.87 million, with a total portfolio of $1.83 billion[17] - The Europe segment reported cash collections of $350.53 million, contributing to a total portfolio of $1.99 billion[17] - The Americas Core portfolio revenue increased to $373.39 million in 2024, reflecting a significant growth trend[17] - The Europe Core portfolio revenue reached $167.84 million in 2024, indicating a strong performance in that region[17] Strategic Outlook - The company is focusing on market expansion strategies to enhance its competitive position in the industry[18] - Ongoing mergers and acquisitions are part of the company's strategy to strengthen its market presence and operational capabilities[18] - The revenue from new product launches and technology developments is expected to contribute significantly to future growth[18] - The company plans to continue focusing on market expansion and new product development to drive future growth[19]

About PRA Group "One of the things I am most proud of is how well we integrated the two companies, not only by sharing knowledge, but also by leveraging the incredible talent PRA Group gained in 2014," said Chair of the Board Steve Fredrickson, one of PRA Group's co-founders. "That talent continues to be an asset to our teams, not to mention our global leadership." Members of the PRA Group Board of Directors and senior leaders gathered in London to commence the company's milestone celebration of global expa ...

Core Viewpoint - PRA Group, Inc. is set to report its second quarter 2024 financial results on August 5, 2024, after market close, followed by a conference call and webcast [1] Financial Reporting - The second quarter 2024 results will be announced after market close on August 5, 2024 [1] - The third quarter 2024 results are planned to be reported after market close on November 4, 2024 [3] Company Overview - PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, aiming to return capital to banks and creditors to enhance financial services for consumers across the Americas, Europe, and Australia [4] - The company employs thousands of individuals worldwide and collaborates with customers to assist in debt resolution [4]

It's been a while since I've updated my thoughts on PRA Group (NASDAQ:PRAA), and a lot has been going on at this underperforming debt collector in the meantime. When I last wrote about PRA, I thought the company was in for a rough 2023 ahead of better results in 2024 and 2025. As it turned out, "rough" didn't really cover it, and the company's 2023 results (and share price) were hammered by operational inefficiencies and poor collections performance. The shares are down about 40% since that last article, re ...

Core Points - PRA Group, Inc. launched its Pride Alliance Employee Resource Group (ERG) to support LGBTQ+ employees and promote inclusivity within the workplace [1][5] - The Pride Alliance is the fifth ERG in the U.S. and the third to be launched globally, with executive co-sponsors Kim Carr and Leigh Bates leading the initiative [5][7] - The virtual launch event included over 70 employees and focused on fostering community and inclusivity through volunteer opportunities and educational resources [6] Company Overview - PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, helping to return capital to banks and creditors while expanding financial services for consumers in the Americas, Europe, and Australia [4] - The company has a diverse workforce and also supports other ERGs such as Women in Business Advocates, Well-Being, Black Excellence, and ¡Hola!, which aim to provide mentorship and community engagement [8]