Portfolio Recovery Associates Earnings: Here’s Why Investors are Happy Now

Portfolio Recovery Associates Inc. (NASDAQ:PRAA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.67%.

Portfolio Recovery Associates Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 36.9% to $2.56 in the quarter versus EPS of $1.87 in the year-earlier quarter.

Revenue: Rose 670.84% to $1.14 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Portfolio Recovery Associates Inc. reported adjusted EPS income of $2.56 per share. By that measure, the company beat the mean analyst estimate of $2.25. It beat the average revenue estimate of $173.32 million.

Quoting Management: “PRA’s very strong Q2 results are exceptional by any measure, with significant new investment of $200 million, record revenue and record profitability,” said Steve Fredrickson, chairman, president and chief executive officer, PRA.
“The company continues to succeed by pressing its considerable competitive advantages, including our underwriting capabilities across multiple asset classes and account dispositions, our ample access to low cost funding, and our operational excellence driven by best in class application of analytics and activity-based ROI discipline,” Fredrickson said.

Key Stats (on next page)…

Revenue increased 572.33% from $169.56 million in the previous quarter. EPS increased 13.27% from $2.26 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $2.33 to a profit $2.37. For the current year, the average estimate has moved up from a profit of $9.21 to a profit of $9.32 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)