Earnings Preview For PennyMac Financial Servs
PennyMac Financial Servs (NYSE:PFSI) is gearing up to announce its quarterly earnings on Tuesday, 2025-04-22. Here's a quick overview of what investors should know before the release.
Analysts are estimating that PennyMac Financial Servs will report an earnings per share (EPS) of $2.82.
The market awaits PennyMac Financial Servs's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Past Earnings Performance
In the previous earnings release, the company missed EPS by $0.14, leading to a 8.82% drop in the share price the following trading session.
Here's a look at PennyMac Financial Servs's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 3.02 | 2.90 | 2.58 | 2.31 |
| EPS Actual | 2.88 | 3.49 | 2.67 | 2.48 |
| Price Change % | -9.0% | -3.0% | -4.0% | -6.0% |
Stock Performance
Shares of PennyMac Financial Servs were trading at $97.06 as of April 18. Over the last 52-week period, shares are up 1.54%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Observations about PennyMac Financial Servs
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding PennyMac Financial Servs.
Analysts have provided PennyMac Financial Servs with 3 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $118.0, suggesting a potential 21.57% upside.
Peer Ratings Comparison
The following analysis focuses on the analyst ratings and average 1-year price targets of Mr. Cooper Gr and Walker & Dunlop, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Mr. Cooper Gr, with an average 1-year price target of $132.56, suggesting a potential 36.58% upside.
- Analysts currently favor an Outperform trajectory for Walker & Dunlop, with an average 1-year price target of $101.67, suggesting a potential 4.75% upside.
Summary of Peers Analysis
In the peer analysis summary, key metrics for Mr. Cooper Gr and Walker & Dunlop are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| PennyMac Financial Servs | Outperform | 31.21% | $281.12M | 2.76% |
| Mr. Cooper Gr | Outperform | 54.53% | $464M | 4.32% |
| Walker & Dunlop | Outperform | 24.46% | $156.35M | 2.45% |
Key Takeaway:
PennyMac Financial Servs ranks highest in gross profit among its peers. It is in the middle for consensus rating and revenue growth. However, it has the lowest return on equity compared to its peers.
Delving into PennyMac Financial Servs's Background
PennyMac Financial Services Inc is a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. residential mortgage loans. The company operates through two segments: production and servicing. The production segment performs loan origination, acquisition and sale activities. The servicing segment performs loan servicing for newly originated loans.
A Deep Dive into PennyMac Financial Servs's Financials
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: PennyMac Financial Servs displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 31.21%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: PennyMac Financial Servs's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 14.96%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): PennyMac Financial Servs's ROE excels beyond industry benchmarks, reaching 2.76%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): PennyMac Financial Servs's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.43%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 5.37.
This article was generated by Benzinga's automated content engine and reviewed by an editor.