Core Insights - PRA Group, Inc. has promoted Owen James to president of PRA Group Europe, succeeding Martin Sjolund [2][3] - James will oversee portfolio investments across Europe and lead operations in 15 markets, aiming to enhance profitability [1][4] - The European business has successfully invested over $3 billion in portfolios in the past seven years, becoming a key performance driver for the company [4][5] Leadership and Experience - Owen James has over 30 years of experience in financial services, including 13 years at PRA Group [5] - He has held various leadership roles within PRA Group's European business and previously worked at Intrum for over 15 years [5][6] - Martin Sjolund expressed confidence in James's ability to lead PRA Group Europe, highlighting his investment experience and operational expertise [6] Company Overview - PRA Group is a global leader in acquiring and collecting nonperforming loans, helping to return capital to banks and creditors [7] - The company operates in the Americas, Europe, and Australia, employing thousands of staff to assist customers in resolving debt [7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [2] Group 2: Encore Capital Group (ECPG) Analysis - ECPG has shown a four-week price change of 10.6%, indicating growing investor interest [3] - Over the past 12 weeks, ECPG's stock gained 10.4%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - ECPG has a beta of 1.65, suggesting it moves 65% more than the market in either direction [4] - ECPG has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - ECPG is trading at a Price-to-Sales ratio of 0.64, suggesting it is undervalued at 64 cents for each dollar of sales [6] Group 3: Investment Opportunities - ECPG is highlighted as a strong candidate for investment, with potential for further price appreciation [7] - Other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria are also available for consideration [7] - Zacks offers over 45 Premium Screens to help identify winning stock picks based on various investing styles [8]

Core Insights - Encore Capital Group, Inc. (ECPG) shares have increased by 24.3% since the release of first-quarter 2025 results, driven by rising collections and strong portfolio purchasing, although higher expenses have partially offset these gains [1] Financial Performance - ECPG reported adjusted earnings per share (EPS) of $1.93 for Q1 2025, exceeding the Zacks Consensus Estimate by 55.7% and improving from $0.95 in the prior year [1] - Revenues increased by 19.6% year over year to $392.8 million, surpassing the consensus mark by 5.5% [2] - Total debt purchasing revenues rose by 20.8% year over year to $366.7 million, while servicing revenues increased by 10.6% to $22.5 million, beating the consensus estimate of $20 million [3] Collections and Expenses - Collections grew by 18% year over year to $604.8 million, exceeding the consensus estimate of $583.3 million, supported by strong portfolio purchasing and a stable collections environment [4] - Total operating expenses rose by 8% year over year to $263.4 million, driven by increased salaries, legal collection costs, and general administrative expenses [4] Interest and Net Income - Interest expenses increased by 26.5% year over year to $70.5 million, while net income surged by 101% year over year to $46.8 million [5] - Global portfolio purchases reached $367.9 million, up from $295.7 million a year ago, with $316.4 million deployed in the United States [5] Financial Position - As of March 31, 2025, total assets were $5 billion, up from $4.8 billion at the end of 2024, while cash and cash equivalents decreased to $187.1 million [5][6] - Borrowings increased to $3.8 billion from $3.7 billion, and total liabilities rose to $4.2 billion from $4 billion at the end of 2024 [6] - Total equity increased to $819.1 million from $767.3 million at the end of 2024 [6] Share Repurchase and Guidance - ECPG repurchased $10 million worth of shares in Q1 2025 [7] - Management expects portfolio purchasing to exceed $1.35 billion in 2025 and collections to grow by approximately 11% to $2.4 billion [8] Zacks Rank - ECPG currently holds a Zacks Rank 2 (Buy) [9]

Financial Performance - Encore's portfolio purchases increased by 24% to $368 million in Q1 2025[6] - Collections increased by 18% to $605 million in Q1 2025 compared to Q1 2024[6] - EPS increased by 103.2% to $1.93 in Q1 2025 compared to $0.95 in Q1 2024[6, 32] - Cash generation for the trailing twelve months increased by 23% for Q1 2025 compared to Q1 2024[17] - The company's leverage improved to 2.6x from 2.8x year-over-year[6] Segment Performance - MCM (U.S.) portfolio purchases increased by 34% to a record $316 million in Q1 2025 compared to Q1 2024[6, 25] - MCM (U.S.) collections increased by 23% to a record $454 million in Q1 2025 compared to Q1 2024[6, 25] - Cabot (Europe) collections increased by 7% to $150 million in Q1 2025 compared to Q1 2024[6, 29] - Cabot (Europe) portfolio purchases were $51 million in Q1 2025, in line with historical trends[6, 29] Market Dynamics and Guidance - The company expects interest expense in 2025 to be $285 million[41] - The company expects the effective tax rate in 2025 to be in the mid-20's %[41] - The company reiterates its full-year guidance, expecting portfolio purchases to exceed $1.35 billion and collections to increase by 11% to $2.4 billion[41]

Financial Data and Key Metrics Changes - Portfolio purchases in Q1 were $368 million, up 24% compared to Q1 2024, while collections reached $654 million, an 18% increase [6][13][14] - Earnings per share for Q1 was $1.93, reflecting a 103% increase year-over-year [6][31] - Leverage improved to 2.6 times, down from 2.8 times a year ago [7][32] - Operating expenses increased by 8% to $263 million, indicating significant operating leverage [29] Business Line Data and Key Metrics Changes - Midland Credit Management (MCM) in the U.S. achieved record portfolio purchases of $316 million, a 34% increase year-over-year, and collections of $454 million, up 23% [9][18] - Cabot Credit Management in Europe reported portfolio purchases of $51 million and collections of $150 million, a 7% increase compared to the previous year [19][20] Market Data and Key Metrics Changes - U.S. revolving credit remains near record levels, with the credit card charge-off rate at its highest in over ten years, driving robust portfolio supply [15][16] - Delinquency rates in the U.S. are near multi-year highs, indicating favorable purchasing conditions [15][17] Company Strategy and Development Direction - The company focuses on markets with strong regulatory frameworks and stable long-term returns, primarily in the U.S. and the U.K. [12][11] - The three-pillar strategy emphasizes market focus, operational efficiency, and compliance to enhance performance and shareholder value [11][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable U.S. market conditions for 2025, anticipating continued growth in portfolio purchases and collections [36][66] - The company expects global portfolio purchasing in 2025 to exceed $1.35 billion, with collections projected to grow by 11% to $2.4 billion [36] Other Important Information - The company resumed share repurchases in Q1, purchasing $10 million worth of shares [8][34] - Interest expense increased by 30% to $69 million due to higher debt balances and interest rates [30] Q&A Session Summary Question: Was the collections performance at Cabot a function of updated forecasts or underlying improvements? - Management indicated it was a combination of improved operations and updated forecasts [42] Question: What is the expected collections multiple for U.S. and Cabot? - Both MCM and Cabot had a collections multiple of 2.3 for Q1 [43] Question: Are purchasing conditions in the U.S. stable? - Management noted that purchasing conditions remain favorable, with expectations for continued strong supply [46] Question: Any volatility in collectability during Q1? - Management reported stable consumer behavior and no significant issues during tax season [47] Question: What drives the cash overs and negative revisions to forecasted recoveries? - Management explained that cash overs and NPV changes are based on different vintages and are not always directly correlated [54] Question: How should changes in recoveries impact core EPS? - Management provided an estimate that the changes in recoveries could translate to about 73 cents impact on EPS [59] Question: Will the pace of buybacks continue throughout 2025? - Future buybacks will depend on financial conditions and performance, but the current pace is expected to continue [62] Question: What is attracting the U.S. market for purchases? - The U.S. market is favorable due to high lending, elevated charge-offs, and ample supply of portfolios [66]

Financial Data and Key Metrics Changes - Portfolio purchases in Q1 2025 were $368 million, up 24% compared to Q1 2024, while collections reached $654 million, an increase of 18% [6][13][14] - Earnings per share for Q1 2025 were $1.93, reflecting a 103% increase from $0.95 in Q1 2024 [6][29] - Leverage improved to 2.6 times, down from 2.8 times a year ago, and flat compared to Q4 2024 [7][31] - Cash generation for the trailing twelve months was up 23% compared to the same period last year [14] Business Line Data and Key Metrics Changes - Midland Credit Management (MCM) in the U.S. had record portfolio purchases of $316 million, a 34% increase year-over-year, and collections of $454 million, up 23% [8][17] - Cabot Credit Management in Europe reported portfolio purchases of $51 million, consistent with historical trends, and collections of $150 million, up 7% [8][18] Market Data and Key Metrics Changes - U.S. revolving credit remains near record levels, with the credit card charge-off rate at its highest in over ten years, indicating favorable purchasing conditions [15][17] - U.S. consumer credit card delinquencies are near multi-year highs, supporting expectations for strong portfolio sales by banks and credit card issuers in 2025 [15][16] Company Strategy and Development Direction - The company focuses on markets with strong regulatory frameworks and stable long-term returns, primarily in the U.S. and the U.K. [12] - The three-pillar strategy emphasizes market focus, operational efficiency, and compliance to enhance performance and shareholder value [11][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable U.S. market conditions, anticipating continued growth in portfolio purchasing and collections in 2025 [34][35] - The company expects global portfolio purchasing in 2025 to exceed $1.35 billion, with global collections projected to grow by 11% to $2.4 billion [35] Other Important Information - The company resumed share repurchases in Q1 2025, purchasing $10 million worth of shares [7][33] - Interest expense increased by 30% to $69 million due to higher debt balances and interest rates [28] Q&A Session Summary Question: Was the collections performance at Cabot a function of updated forecasts or underlying improvements? - Management indicated it was a combination of both improved operations and updated forecasts [40][41] Question: What is the expected collections multiple for U.S. and Cabot? - Both MCM and Cabot had a collections multiple of 2.3 times for Q1 [42] Question: Are purchasing conditions in the U.S. stable? - Management confirmed that purchasing conditions remain favorable, with stable delinquency and charge-off rates [44][45] Question: Any volatility in collectability during Q1? - Management reported stable consumer behavior and no significant issues during tax season [46][47] Question: What drives cash overs and negative revisions to forecasted recoveries? - Management explained that cash overs and NPV changes are based on different vintages and are not always directly correlated [53][55] Question: How should the $21.5 million of changes in recoveries be viewed from a core EPS perspective? - Management indicated that this could translate to about 73 cents impact on EPS, but emphasized the strong collections performance [58][60] Question: Will the pace of buybacks continue throughout 2025? - Future buybacks will depend on financial conditions and market opportunities, but the company has resumed repurchases as planned [61][63] Question: What is attracting the U.S. market for purchases going forward? - Management noted ample supply and strong returns, with expectations for record purchasing in 2025 [67][68] Question: Any unusual mix between new payment plans and one-time payments during Q1? - Management confirmed that there were no unusual changes in payment types, with consistent performance across all channels [72][74] Question: How long before a newly acquired bank might start selling into the market? - Management suggested it would take time for any new seller to align strategies and begin selling, indicating a gradual process [76][77]

PRA Group Q1 2025 Conference Call Presentation Nasdaq: PRAA Forward-Looking Statements 1 Nasdaq: PRAA Q1 2025 Highlights Started 2025 with Momentum and Delivered Strong Results | Metric ($ in M, except per share amounts) | Q1 2025 | Q1 2024 | Change | | --- | --- | --- | --- | | Portfolio Purchases | $292 | $246 | +19% | | ERC1 | $7,805 | $6,498 | +20% | | Cash Collections | $497 | $450 | +11% | | Cash Efficiency Ratio2 | 60.8% | 58.0% | +284 bps | | Changes in Expected Recoveries | $28 | $52 | (46%) | | Ne ...

Core Insights - PRA Group, Inc. reported a record estimated remaining collections (ERC) of $7.8 billion, reflecting a 20.1% year-over-year increase, driven by a 19% growth in portfolio purchases [1][8] - The company achieved total cash collections of $497.4 million in Q1 2025, marking a 10.7% increase compared to $449.5 million in Q1 2024 [5][8] - The transition to the newly appointed CEO Martin Sjolund is expected to enhance the company's strategic initiatives and operational efficiency [1][4] Financial Performance - Net income attributable to PRA Group, Inc. for Q1 2025 was $3.7 million, a 5.3% increase from $3.5 million in Q1 2024, with diluted earnings per share remaining at $0.09 [4][19] - Total portfolio revenue increased by 6.0% to $268.9 million in Q1 2025, compared to $253.7 million in Q1 2024 [6][8] - Operating expenses rose by 3.1% to $195.0 million in Q1 2025, primarily due to investments in the U.S. legal collections channel [17][19] Cash Collections and Portfolio Purchases - Total portfolio purchases reached $291.7 million in Q1 2025, an 18.7% increase from $245.8 million in Q1 2024 [9][8] - Cash collections from the Americas and Australia Core segment amounted to $288.2 million in Q1 2025, up from $256.9 million in Q1 2024 [5][9] - The company reported a cash efficiency ratio of 60.8%, reflecting an improvement of 284 basis points year-over-year [8] Strategic Outlook - The company maintains its long-term financial targets, with an expectation that the return on average tangible equity will be lower than the previously targeted 12% [4][8] - The management is optimistic about the overall trajectory of the business, emphasizing a commitment to driving growth, profitability, and shareholder value [4][8]

NORFOLK, Va., April 21, 2025 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, will report its first quarter 2025 results after market close on Monday, May 5, 2025, 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-and-presentations. To listen by phone on May 5, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask fo ...

PRA Group, Inc. (PRAA) is strategically positioned to grow in collecting debts. It expanded its services beyond debt collection, working for the government and giving audit services. Although PRAA has declined 4.9% in the past month, it shed less value than the industry average of an 11.5% fall.PRA Group — with a market cap of $708.8 million — is a global finance and business service company based in Norfolk, VA. It acquires and collects non-performing loans and debt. The company has a growing network in th ...