PRA Group (PRAA) got here out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.42 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 69.33%. 1 / 4 in the past, it was anticipated that this debt collector would put up earnings of $0.62 per share when it truly produced earnings of $0.65, delivering a shock of 4.84%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 4 occasions.
PRA Group, which belongs to the Zacks Monetary – Miscellaneous Providers trade, posted revenues of $289.47 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 7.97%. This compares to year-ago revenues of $251.78 million. The corporate has topped consensus income estimates 4 occasions during the last 4 quarters.
The sustainability of the inventory’s instant worth motion primarily based on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
PRA Group shares have misplaced about 1% for the reason that starting of the 12 months versus the S&P 500’s acquire of 11%.
What’s Subsequent for PRA Group?
Whereas PRA Group has underperformed the market to this point this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist buyers handle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified recently.
Empirical analysis exhibits a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful observe document of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for PRA Group was blended. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out according to the market within the close to future. You may see the entire checklist of at this time’s Zacks #1 Rank (Sturdy Purchase) shares right here.
It will likely be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $0.79 on $268.15 million in revenues for the approaching quarter and $2.90 on $1.06 billion in revenues for the present fiscal 12 months.
Traders needs to be conscious of the truth that the outlook for the trade can have a fabric influence on the efficiency of the inventory as properly. By way of the Zacks Business Rank, Monetary – Miscellaneous Providers is at the moment within the prime 47% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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PRA Group, Inc. (PRAA): Free Inventory Evaluation Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.