PennyMac Financial Services misses Q4 revenue estimates

Overview

• U.S. mortgage lender's Q4 revenue missed analyst expectations

• Adjusted pretax profit for Q4 missed analyst estimates

• Company's loan production and servicing portfolio grew significantly year-over-year

Outlook

• PennyMac expects PMT to acquire 15-25% of conventional conforming correspondent production in Q1 2026

• Company remains focused on strategies to drive sustained long-term value for stockholders

• PennyMac sees its balanced business model as a foundation for continued growth in 2026

Result Drivers

• PRODUCTION VOLUMES - Higher volumes in consumer direct lending channel drove production segment pretax income increase

• PREPAYMENT ACTIVITY - Increased prepayment activity due to lower mortgage rates impacted servicing segment's cash flows

• MSR PORTFOLIO SALE - Sale of MSR portfolio affected servicing segment revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "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 $154.00, about 4.8% above its January 28 closing price of $146.98

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw7yyfhKa

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