NASDAQ$PRAA

Pra Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

PRA Group's performance was driven by strong European operations and increased portfolio purchases.

PRA Group reported mixed results for Q2 2023. While portfolio purchases increased significantly and cash collections exceeded internal expectations, the company experienced a net loss. The company remains focused on organic growth and optimizing business processes.

  • Total portfolio purchases increased 41.7% year-over-year to $327.8 million.
  • Total cash collections were $419.3 million.
  • Cash efficiency ratio of 61.2%.
  • Diluted earnings per share were $(0.10).

Headline financials

Total Revenue

$209M

Previous: $258M-19.0%
EPS (adj)

-$0.10

Previous: $0.91-111.0%
Estimated remaining collections

$5.9B

Previous: $5.6B+5.4%
Cash efficiency ratio

61.2%

Previous: 61.3%-0.2%
Capital Expenditures

$686K

Previous: -$8.21M+108.4%
Free Cash Flow

-$34M

Previous: $28.3M-220.3%
Net Income

-$3.8M

Previous: $36.5M-110.4%
Operating Income

$45.6M

Previous: $83.7M-45.6%
Gross Profit

$123M

Previous: $258M-52.4%
Cash & Equivalents

$111M

Previous: $68M+63.8%
Total Assets

$4.32B

Previous: $4.09B+5.7%
Stock-Based Comp

$2.72M

Previous: $3.85M-29.5%

Revenue & EPS history

Pra Group · Revenue · Quarterly

$209M

Q2 2023-19%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Pra Group · $205M total across 2 segments · Q2 2023

  • Portfolio income
    $184M
  • Changes in expected recoveries
    $21.1M

Forward guidance

PRA Group is laying the foundation for a stronger, profitable, and higher performing organization.

Tailwinds

  • Focus on driving organic growth.
  • Optimizing business processes.
  • Capitalizing on the increase in the supply of portfolios with improved pricing.
  • Cash collections exceeded internal expectations, primarily driven by the strength of European operations.
  • Balance sheet remains strong, and the company has the funding capacity to continue growing ERC.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.5%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.2%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+37.1%

Q1 2020

Best reaction

-31.0%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.1%-29.6%
Q4 2025+24.0%+34.6%+33.0%
Q3 2025-11.1%+0.7%+17.6%
Q1 2025-29.4%-30.0%-26.1%
Q4 2024-4.2%-6.0%-13.9%
Q3 2024+14.3%+16.0%-0.4%
Q2 2024-10.3%-5.3%-7.5%
Q1 2024+0.4%+6.1%-16.5%
Q4 2023+21.6%+13.3%-0.8%
Q3 2023+20.3%+14.2%+46.6%
Q2 2023-0.6%-7.1%-12.1%
Q1 2023-31.0%-47.4%-33.8%
Q4 2022+5.8%+5.5%-5.2%
Q3 2022-3.1%+1.7%+7.7%
Q2 2022+2.3%+2.3%-4.8%
Q1 2022-6.5%-8.8%-11.2%
Q4 2021-2.2%-2.0%-1.7%
Q3 2021-2.1%-4.0%-3.6%
Q2 2021+9.6%+6.7%+10.2%
Q1 2021+0.0%-3.1%+0.3%
Q4 2020-2.1%-2.5%-1.0%
Q3 2020-1.0%+5.4%+17.9%
Q2 2020+5.7%+6.9%+7.3%
Q1 2020+37.1%+32.6%+56.3%
Q4 2019+10.6%+8.2%-20.3%
Q3 2019+7.7%+7.3%+6.3%
Q2 2019+11.8%+12.3%+16.4%
Q1 2019+5.6%+5.4%+6.5%
Q4 2018-3.8%-6.8%-16.1%
Q3 2018-11.6%-2.0%-13.0%
Q2 2018-8.6%-5.7%-7.2%
Q1 2018+8.3%+6.4%+12.2%
Q4 2017+8.7%+10.4%+7.8%
Q3 2017+23.7%+20.4%+28.2%
Q2 2017-11.5%-17.7%-26.8%
Q1 2017+10.1%+11.0%+12.0%
Q4 2016-14.2%-17.2%-21.1%
Q3 2016-12.6%+0.3%+20.1%
Q2 2016+6.8%+0.7%+20.7%
Q1 2016-20.7%
Q4 2015-15.9%
Q3 2015-14.1%
Q2 2015-10.0%
Q1 2015+5.9%
Q4 2014-0.7%
Q3 2014-2.3%
Q2 2014-6.2%
Q1 2014-1.5%
Q4 2013+16.7%
Q3 2013-6.2%
Q2 2013+5.6%
Q1 2013+7.3%
Q4 2012+6.9%
Q3 2012+4.4%
Q2 2012+18.0%
Q1 2012+10.5%
Q4 2011-0.6%
Q3 2011-0.5%
Q1 2010-11.0%
Q2 2011-11.0%
Q1 2011+1.7%
Q4 2008+0.4%
Q4 2010+0.4%
Q3 2010+0.1%
Q3 2009+0.1%
Q2 2010-1.0%
Q2 2009-1.0%
Q4 2009-1.0%

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