PennyMac Financial Services Earnings: Here’s Why the Stock is Down Now

PennyMac Financial Services (NYSE:PFSI) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.21%.

PennyMac Financial Services Earnings Cheat Sheet

Revenue: Was the same at $110.78 million as the year-earlier quarter.

Actual vs. Wall St. Expectations: PennyMac Financial Services reported adjusted EPS income of $0.38 per share. By that measure, the company missed the mean analyst estimate of $0.59. It beat the average revenue estimate of $105.7 million.

Quoting Management: “PennyMac Financial is building the leading non-bank mortgage specialist company and continues to demonstrate growth in all of our underlying business drivers,” said Chairman and Chief Executive Officer Stanford L. Kurland. “Our pace of growth in correspondent lending slowed somewhat, due to higher mortgage rates and the resulting origination market conditions. However, we continued to demonstrate significant organic growth in loan servicing, driven by our production activities. Our investment management business continues to contribute management fees and performance-driven incentive fees and is poised for additional growth with many attractive investment opportunities being pursued for PennyMac Mortgage Investment Trust (NYSE:PMT) in particular.”

Key Stats (on next page)…

Revenue increased 4.81% from $105.7 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from $0 to a profit $0.44. For the current year, the average estimate has moved up from $0 to a profit of $2.04 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)