PennyMac Financial Services Q2 revenue misses analyst expectations
Overview
PennyMac Q2 revenue misses analyst expectations, adjusted pretax profit also missed, per LSEG data
Net income for Q2 was $136.5 mln
Co declared a cash dividend of $0.30 per share
Outlook
Company expects PennyMac Mortgage Investment Trust (PMT) to acquire all jumbo correspondent production in Q3 2025, under a renewed mortgage banking services agreement with PMT
Company focuses on AI to enhance production and servicing operations
PennyMac aims for strategic portfolio growth and core business objectives
Result Drivers
AI IMPLEMENTATION - Technological enhancements, including AI, expected to improve efficiency and operations, per CEO David Spector
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $444.70 mln | $553.80 mln (8 Analysts) |
Q2 Net Income |
| $136.50 mln |
|
Q2 Adjusted Pretax Profit | Miss | $143.70 mln | $202.40 mln (7 Analysts) |
Q2 Dividend |
| $0.3 |
|
Q2 Pretax Profit |
| $76.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for PennyMac Financial Services Inc is $123.00, about 17.1% above its July 21 closing price of $101.94
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nBw3S6SKPa
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