PennyMac (PFSI) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - PennyMac Financial (PFSI) reported revenue of $411.83 million for the quarter ended September 2024, reflecting a year-over-year increase of 2.9% but a revenue surprise of -16.06% compared to the Zacks Consensus Estimate of $490.62 million [1] - The company's EPS for the quarter was $3.49, significantly higher than the $1.77 reported in the same quarter last year, and exceeded the consensus EPS estimate of $2.92 by +19.52% [1] Revenue Breakdown - Net gains on loans held for sale at fair value reached $256.82 million, surpassing the average estimate of $217.17 million by three analysts, marking a year-over-year increase of +69.7% [1] - Net interest income was reported at $7.87 million, compared to an estimated -$2.33 million, indicating a year-over-year decline of -18.7% [1] - Loan servicing fees totaled $462.04 million, slightly above the average estimate of $446.89 million [1] - Management fees were reported at $7.15 million, below the average estimate of $7.70 million, reflecting a year-over-year change of -0.3% [1] - Fulfillment fees from PMT reached $11.49 million, exceeding the average estimate of $10.30 million, with a year-over-year increase of +107.8% [1] - Loan origination fees amounted to $49.43 million, surpassing the estimated $44.16 million, representing a +31.1% change compared to the previous year [1] - Other revenue was reported at $3.24 million, significantly lower than the two-analyst average estimate of $9.27 million, with a year-over-year decline of -6.6% [1] Stock Performance - Over the past month, shares of PennyMac have returned -6.7%, contrasting with the Zacks S&P 500 composite's +2.8% change [2] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance against the broader market in the near term [2]