Portfolio Recovery Associates Earnings Preview

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Watch Portfolio Recovery Associates' (NAS: PRAA) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, February 16. Portfolio Recovery Associates is engaged in the business of purchasing, managing, and collecting portfolios of defaulted consumer receivables, as well as offering a range of accounts receivable management and payment processing services.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Portfolio Recovery Associates' rating hasn't changed over the past three months.
  • Revenue Forecasts: On average, analysts predict $116.1 million in revenue this quarter. That would represent a rise of 15.2% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $1.52 per share. Estimates range from $1.50 to $1.55.

What our community says:
CAPS All-Stars are strongly backing the stock, with 98.2% assigning it an "outperform" rating. The greater community is in line with the All-Stars, as 97.2% give it a rating of "outperform." Fools are bullish on Portfolio Recovery Associates and haven't been shy with their opinions lately, logging 922 posts in the past 30 days. Portfolio Recovery Associates has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Portfolio Recovery Associates' profit has risen year-over-year by an average of 47.9% over the past five quarters.

Now let's get some insight into how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. Portfolio Recovery Associates' net margins, which reflect what percentage of revenue becomes profit, have been rising year-over-year for the last four quarters. Here is how Portfolio Recovery Associates has been doing for the last four quarters: 

QuarterQ3Q2Q1Q4
Net Margin22.3%22.3%20.7%20.5%

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The Motley Fool owns shares of Portfolio Recovery Associates. Motley Fool newsletter services have recommended buying shares of Portfolio Recovery Associates. Motley Fool newsletter services have recommended writing puts in Portfolio Recovery Associates.. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time this article was published

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