Core Viewpoint - PRA Group, Inc. (PRAA) is well-positioned for growth in debt collection, having expanded its services to include government work and audit services, despite a recent decline in stock value that is less severe than the industry average [1][2]. Company Overview - PRA Group has a market capitalization of $708.8 million and operates globally, acquiring and collecting non-performing loans and debt, with a growing presence in the Americas, Europe, and Australia [2]. - The company currently holds a Zacks Rank 2 (Buy), indicating solid prospects for future performance [2]. Financial Estimates - The Zacks Consensus Estimate for PRA Group's 2025 earnings is $2.26 per share, reflecting a 26.3% year-over-year increase, with three upward estimate revisions in the past two months [3]. - Revenue estimates for 2025 are projected at $1.17 billion, indicating a 5.2% year-over-year rise [3]. Growth Drivers - PRA Group achieved a record portfolio purchase of $1.4 billion in the fourth quarter of 2024, marking a 22% year-over-year increase, and anticipates further growth in 2025 [4]. - The company reported $1.9 billion in cash collections for 2024, representing a 13% year-over-year growth, with 89% of cash collections coming from portfolios purchased before 2024 [5]. Financial Performance - The cash efficiency ratio improved to 59% in 2024 from 58% in 2023, with total revenues of $293 million for Q4 2024 and $1.1 billion for the full year, reflecting increases of 32% and 39% respectively [6]. - In Q4 2024, net income attributable to PRAA was 47 cents per share, exceeding the Zacks Consensus Estimate by 4.4%, and the company has consistently beaten earnings estimates over the past four quarters, with an average surprise of 297.1% [6].