Cash Efficiency And CostsThe only negative variance relative to previous forecast was a modestly lower Cash Efficiency ratio, and the stepped-up investments in up-front legal costs will continue at a greater pace than forecast.
Negative News ImpactPRAA shares have suffered from the onslaught of negative news flow related to the problems at Intrum, Europe’s largest debt collector, which filed for bankruptcy protection.
Stock PerformancePRAA shares have notably under-performed both consumer finance peers and the S&P 500 with the stock down approximately 13% YTD and down approximately 25% from its 52-week peak despite delivering outstanding results and guidance upside.