PennyMac Financial Services Inc (PFSI) reported less than expected earnings this afternoon for Q4 2022.
Analyst expectations for PennyMac Financial Services Inc. earnings per share (EPS) were at $1.15, with the company missing those estimates with a reported EPS of $0.93, leading to a negative surprise of $0.22 per share (-19%). PennyMac Financial Services Inc.'s earnings were down 67% year-over-year as the firm reported an EPS of $2.79 in its year-ago quarter. The negative annual growth shows the Financial Services company isn't performing well amid current economic conditions.
Revenues were downbeat at $340.4 million. That represents a 50.93% decrease in revenues from the year-ago report and is 4.48% lower than consensus estimates set at $356.4 million.
The stock is down 5.68% to $68.43 after the report.
PennyMac Financial Services Inc.'s profit margins took a hit as earnings fell at a faster pace than revenues.
Wall Street Analysts had an average rating of Buy on the stock prior to the report.
InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.
PennyMac Financial Services Inc. has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 92, putting PennyMac Financial Services Inc. in the top 25% of stocks. The firm was recently trading at a 52-week high of $73.79 on February 2, 2023 and set a 52-week low on June 17, 2022 at $38.53.
PennyMac Financial Services Inc is a United States-based financial services company primarily engaged in mortgage lending. The company operates through three segments: production, servicing, and investment management. The company's production and servicing segment together form the mortgage banking business that includes mortgage loan origination, acquisition, and sale activities; while the investment management segment includes investment manager's activities, such as performing diligence, and managing acquired assets. The company generates the majority of revenue from its mortgage banking business.