Mortgage banking company PennyMac Financial Services (NYSE: PFSI) will be announcing earnings results this Tuesday after market hours. Here’s what you need to know.
PennyMac Financial Services missed analysts’ revenue expectations last quarter, reporting revenues of $537.1 million, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Is PennyMac Financial Services a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PennyMac Financial Services’s revenue to grow 4.1% year on year, slowing from the 23.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PennyMac Financial Services has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at PennyMac Financial Services’s peers in the thrifts & mortgage finance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. WaFd Bank delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 4%, and Northwest Bancshares reported revenues up 12.1%, topping estimates by 0.8%. WaFd Bank traded up 8.4% following the results while Northwest Bancshares was also up 5%.
Read our full analysis of WaFd Bank’s results here and Northwest Bancshares’s results here.
There has been positive sentiment among investors in the thrifts & mortgage finance segment, with share prices up 4.5% on average over the last month. PennyMac Financial Services’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $123.29 (compared to the current share price of $90.00).
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