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Jun 30, 2022
Pra Group Q2 2022 Earnings Report
PRA Group's financial performance reflected a solid purchasing quarter driven by increased portfolio acquisitions in Europe, particularly in Northern Europe, with strategic capital allocation through share repurchases.
Key Takeaways
PRA Group reported a decrease in total cash collections and portfolio revenue compared to Q2 2021, but a solid purchasing quarter driven by increased portfolio acquisitions in Europe. The company repurchased shares of common stock, underscoring its commitment to deploy capital in the areas that can generate the highest returns for its shareholders.
Total portfolio purchases were $231.3 million.
Total cash collections reached $444.1 million.
Diluted earnings per share were $0.91.
Company repurchased $34.9 million in common stock, representing 0.8 million shares.
Forward Guidance
Company expects more supply will be available in the coming months and will continue executing its measured strategy, while remaining active in the market and preparing to ramp up its purchasing as supply increases.
Positive Outlook
- Company had a solid purchasing quarter, driven by increased portfolio acquisitions in Europe, specifically in Northern Europe
- Company continues to see deterioration in consumer savings, higher credit card balances, and rising delinquency rates, which we believe suggests that more supply will be available in the coming months
- Company's strong balance sheet and geographic diversity provide it with a significant competitive advantage in capitalizing on what appears to be an increasingly favorable purchasing environment
- Company's strong balance sheet permits it to be disciplined in capital allocation strategy
- Company repurchased nearly $35 million of shares of its common stock, underscoring its commitment to deploy capital in the areas that can generate the highest returns for its shareholders
Historical Earnings Impact
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Avg. Return Before/After Earnings
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