PRA Group reports Q1 EPS 9c, consensus 41c

Reports Q1 revenue $269.62M, consensus $285.97M. “Building on a successful 2024, we delivered another strong quarter, including an increase in portfolio purchases of 19%, record ERC, our fourth consecutive quarter of double-digit cash collections growth, and a nearly 300 basis point improvement in cash efficiency, as we continued to execute on our cash-generating and operational initiatives in the U.S.,” said CEO Vikram Atal. “Changes in Expected Recoveries moderated from recent levels. Historically, our Q1 cash collections in the U.S. have experienced seasonality increases, typically driven by consumer tax refunds, that didn’t materialize this quarter to the extent that we modeled, resulting in lower profitability compared to prior quarters. …We are confident in the overall trajectory of the business and, at this time, we are not changing our previously provided financial targets, except for the return on average tangible equity, which is likely to be at a lower level than our target of approximately 12%. As we move through the coming quarters, we will reaffirm, raise, or lower these targets as appropriate. We continue to take a long-term approach to managing the business and we believe we are well-positioned to execute on our strategy to drive continued growth, profitability, and shareholder value.”