From Nasdaq:

PRA Group, Inc. is set to report its fourth-quarter 2023 results on Feb 15 after the closing bell. The Zacks Consensus Estimate for the fourth quarter loss per share of 35 cents suggests a 185.4% drop from the prior-year earnings of 41 cents. For the last quarter, the company’s adjusted loss per share of 31 cents was narrower than the Zacks Consensus Estimate of a loss of 39 cents per share.

Despite some positives from robust portfolio purchases, favorable pricing, and improved operational results, PRA Group’s fourth-quarter results are expected to witness a year-over-year decline. On the revenue front, the Zacks Consensus Estimate for fourth-quarter revenues of $210.3 million indicates a 5.6% decrease from the year-ago reported figure. Moreover, expenses related to legal collection fees and agency fees are expected to have increased in the quarter.

The company’s fourth-quarter results are expected to benefit from improved portfolio supply and pricing in the United States amid ongoing credit normalization. On the flip side, the Zacks Consensus Estimate predicts cash collections to fall for Americas and Australia Core, Americas Insolvency, and changes in expected recoveries to plunge year over year in the fourth quarter. Additionally, expenses are expected to rise due to several initiatives to drive improvement in customer contact rates and expand legal processes.

Our proven model does not conclusively predict an earnings beat for PRA Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. PRA Group currently carries a Zacks Rank #3.

While an earnings beat looks uncertain for PRA Group, here are some companies from the broader Finance space that you may want to consider for an earnings beat this time around: American Homes 4 Rent, Trupanion, Inc., and Coinbase Global, Inc. Each company has an Earnings ESP and Zacks Rank to indicate potential for an earnings beat.



Read more: Will Higher Expenses Hurt PRA Group’s (PRAA) Q4 Earnings?