NASDAQ$PRAA

Pra Group Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reflected strong cash collections, robust portfolio buying, significant revenue increases and solid net income.

PRA Group reported strong Q3 2024 financial results with increased cash collections, robust portfolio buying, significant revenue increases, and solid net income. The company invested $350 million in portfolios, achieving a record ERC of $7.3 billion. Cash collections grew 14% year-over-year. The company is on track to exceed its 2024 targets and announced 2025 targets.

  • Net income attributable to PRA Group, Inc. was $27.2 million, or diluted earnings per share of $0.69, including a tax benefit item of $7.7 million, or $0.20 per share.
  • Total portfolio purchases were $350.0 million.
  • Total cash collections were $477.1 million.
  • Record estimated remaining collections (ERC) reached $7.3 billion.

Headline financials

Total Revenue

$281M

Previous: $216M+30.1%
EPS

$0.69

Previous: -$0.31+322.6%
Cash efficiency ratio

60.1%

No prior period
Capital Expenditures

-$2.88M

Previous: -$2.31M-24.9%
Free Cash Flow

$24.3M

Previous: -$14.6M+266.6%
Net Income

$27.2M

Previous: -$12.3M+321.4%
Operating Income

$90M

Previous: $43M+109.0%
Gross Profit

$281M

Previous: $216M+30.1%
Stock-Based Comp

$3.25M

Previous: $1.63M+99.6%

Revenue & EPS history

Pra Group · Revenue · Quarterly

$281M

Q3 2024+30.1%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

The Company is on track to achieve the following financial and operational targets for full year 2024 and announces targets for full year 2025.

Tailwinds

  • Strong portfolio investment levels
  • Double-digit cash collections growth
  • ~60% cash efficiency ratio
  • 8%+ return on average tangible equity2 (up from 6% - 8% previously)
  • Portfolio investment levels to exceed $1.0 billion

Headwinds

  • Cash collections growth of 8% - 10%
  • 60%+ cash efficiency ratio
  • Double-digit return on average tangible equity2
  • Effective tax rate for the nine months ended September 30, 2024 was 13.7%.
  • Interest expense, net in Q3 2024 was $61.1 million, an increase of $11.6 million, or 23.4%, compared to $49.5 million in Q3 2023, primarily reflecting higher debt balances to support portfolio investments.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.5%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+1.6%

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%-23.3%
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 2009+0.1%
Q3 2010+0.1%
Q4 2009-1.0%
Q2 2009-1.0%
Q2 2010-1.0%

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