Shares of PRA Group (NASDAQ:PRAA), a global leader in acquiring and collecting nonperforming loans, closed nearly 14% lower Wednesday after the company released weaker-than-expected second-quarter results that sent some investors heading for the exits.
There were a handful of business and financial highlights worth noting. Starting from the top, total revenue checked in at $200.3 million, a decline from the prior year's $228.5 million and also below analysts' estimates of $209.2 million. Net income took a more drastic plunge, dropping from $36.5 million during the prior year down to $11.7 million during the second quarter. That bottom-line result was worth $0.25 per share, which fell far short of analysts' estimates calling for $0.50 per share, according to Thomson Reuters.
For investors keeping track, large double-digit swings in share price aren't out of the ordinary for PRA Group.
Management remains optimistic about trends, but it's clear the focus needs to be shoring up the bottom line and igniting top-line growth. PRA Group has hired nearly 900 net new U.S. collectors since June 2016, and almost 250 collectors during the second quarter of 2017 alone. That could help push the top line higher, but management has its work cut out for it in the near term.