PennyMac Financial Services (NYSE:PFSI) Posts Earnings Results, Misses Expectations By $0.22 EPS

Key Points

• PennyMac Financial Services missed quarterly expectations: The company reported earnings of $1.05 per share versus the $1.27 consensus estimate, while revenue of $502 million came in below forecasts of $531.77 million.
• Shares showed modest gains but remain well below their 52-week high: PFSI traded at $64.50 after rising $1.08, compared with a one-year range of $57.52 to $160.36.
• Analyst sentiment is mixed but leans toward Hold: The stock has a consensus “Hold” rating and an average price target of $93.57, although several firms recently lowered their targets and two analysts rate it a Sell.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) posted its quarterly earnings data on Thursday. The real estate investment trust reported $1.05 earnings per share for the quarter, missing the consensus estimate of $1.27 by ($0.22), FiscalAI reports. PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%. The firm had revenue of $502.00 million for the quarter, compared to analyst estimates of $531.77 million.

PennyMac Financial Services Price Performance

NYSE PFSI traded up $1.08 during trading hours on Thursday, reaching $64.50. 438,638 shares of the stock traded hands, compared to its average volume of 667,226. The company has a market cap of $3.35 billion, a price-to-earnings ratio of 8.86 and a beta of 1.45. PennyMac Financial Services has a 1 year low of $57.52 and a 1 year high of $160.36. The stock has a 50 day simple moving average of $66.51 and a two-hundred day simple moving average of $85.85. The company has a debt-to-equity ratio of 3.22, a current ratio of 0.38 and a quick ratio of 0.38.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on PFSI shares. Wall Street Zen downgraded PennyMac Financial Services from a "hold" rating to a "sell" rating in a research note on Saturday, August 1st. Wells Fargo & Company reduced their target price on PennyMac Financial Services from $100.00 to $95.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Barclays dropped their price objective on PennyMac Financial Services from $85.00 to $71.00 and set an "equal weight" rating for the company in a research report on Monday, October 5th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of PennyMac Financial Services in a research note on Monday, August 3rd. Finally, Stephens cut their target price on shares of PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 30th. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $93.57.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc NYSE: PFSI is a specialty financial services company focused on the U.S. residential mortgage market. Through its subsidiaries, the company originates, acquires, and services residential mortgage loans, with an emphasis on conventional, government-backed, and other mortgage products.

PennyMac's primary businesses include mortgage production, loan servicing, and investment management. Its production platform acquires and originates loans through correspondent relationships with banks and other lenders, as well as through direct-to-consumer and broker channels.

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