PennyMac Financial Services (PFSI) saw its stock price plummet 5.04% in after-hours trading on Tuesday, following the release of its second-quarter earnings report that fell short of analyst expectations. The mortgage lender and servicer's financial results disappointed investors, triggering a significant sell-off.
The company reported adjusted earnings of $2.54 per share for the quarter ended June 30, up from $1.85 a year earlier but below the FactSet analyst consensus of $2.75. Revenue for the quarter came in at $444.7 million, an increase from $406.1 million in the same period last year, but significantly lower than the $553.8 million expected by analysts polled by FactSet.
PennyMac's adjusted pretax profit for Q2 was $143.7 million, well below the IBES estimate of $202.4 million. The company's net income for the quarter stood at $136.5 million. Despite the earnings miss, PennyMac declared a cash dividend of $0.30 per share, payable on August 22 to shareholders of record as of August 13. The company's focus on AI implementation to enhance production and servicing operations, as highlighted by CEO David Spector, failed to offset investor concerns about the weaker-than-expected financial performance.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.