PennyMac Financial (PFSI) Q3 Earnings Top Estimates

Company Performance - PennyMac Financial (PFSI) reported quarterly earnings of $3.49 per share, exceeding the Zacks Consensus Estimate of $2.92 per share, and up from $1.77 per share a year ago, representing an earnings surprise of 19.52% [1] - The company posted revenues of $411.83 million for the quarter ended September 2024, which missed the Zacks Consensus Estimate by 16.06%, compared to year-ago revenues of $400.31 million [1] - Over the last four quarters, PennyMac has surpassed consensus EPS estimates four times but has not beaten consensus revenue estimates [1] Stock Outlook - The immediate price movement of PennyMac's stock will largely depend on management's commentary during the earnings call [2] - PennyMac shares have increased by approximately 18.8% since the beginning of the year, while the S&P 500 has gained 22.7% [2] Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $3.06 on revenues of $528.89 million, and for the current fiscal year, it is $11.22 on revenues of $1.73 billion [4] - The estimate revisions trend for PennyMac is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [4] Industry Context - The Financial - Mortgage & Related Services industry, to which PennyMac belongs, is currently ranked in the top 7% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [5] - Another company in the same industry, Essent Group (ESNT), is expected to report quarterly earnings of $1.70 per share, reflecting a year-over-year change of +2.4%, with revenues anticipated to be $313.17 million, up 5.8% from the previous year [5]