PennyMac Financial Services Inc. Down 5.68% To $68.43 After Earnings Miss

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.