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]

PRA Group, Inc. (PRAA) is well-poised to grow due to higher recent portfolio purchases and improved pricing in the United States, coupled with better overall cash collections. The company's adeptness in managing diverse debt types positions it strategically for effective portfolio diversification. PRA Group is a global financial and business services company in the Americas, Australia and Europe, with a market cap of $797.4 million. The company specializes in the acquisition, collection and management of no ...

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].

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 ...

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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 ...