Portfolio Recovery Associates Earnings: Here’s Why Shares are Down 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 down 0.13%.

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Portfolio Recovery Associates Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 53.74% to $2.26 in the quarter versus EPS of $1.47 in the year-earlier quarter.

Revenue: Rose 20.98% to $169.56 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Portfolio Recovery Associates Inc. reported adjusted EPS income of $2.26 per share. By that measure, the company beat the mean analyst estimate of $2.1. It beat the average revenue estimate of $164.36 million.

Quoting Management: “PRA began 2013 the same way we ended 2012, reporting record, year-over-year results,” said Steve Fredrickson, chairman, president and chief executive officer, PRA.
“This quarter we produced across the board growth in cash collections, revenue and net income, which again drove return on average equity over our target of 20%. Our investment in new U.S. and U.K. portfolios of consumer debt surpassed even our extraordinary Q4 2012 level of acquisitions. PRA has now acquired $414 million in new accounts during the last six months that will drive revenue and income for years to come,” Fredrickson said.

Key Stats (on next page)…

Revenue increased 9.93% from $154.25 million in the previous quarter. EPS increased 7.62% from $2.10 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 $2.19 to a profit $2.25. For the current year, the average estimate has moved up from a profit of $8.79 to a profit of $8.91 over the last ninety days.

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