PennyMac Financial Posts Strong EPS PennyMac Financial Posts Strong EPS but Misses Revenue Expectations for Q2 2024
PennyMac Financial Services, Inc. (NYSE: PFSI) delivered mixed results for Q2 2024. The company reported earnings per share (EPS) of $2.67, beating analyst expectations of $2.58. However, revenue came in at $406.1 million, falling short of the forecasted $466.6 million.
Key Performance Drivers:
• Servicing Segment: PennyMac’s servicing portfolio grew significantly, reaching $632.7 billion, a 10% year-over-year increase. This segment generated $88.5 million in pre-tax income, a notable jump from $46.5 million in Q2 2023
• Mortgage Origination: Despite strong earnings, revenue from loan origination was slightly affected due to volatile interest rates and the housing market environment.
Looking forward, the company’s continued expansion in its servicing operations, along with strategic adjustments in mortgage origination, positions it for sustained growth. Investors remain optimistic with price targets around $107.
NOT TRADING ADVICE. ALWAYS DO YOUR OWN RESEARCH.
PFSI trade ideas
PFSI is warming up for some gainsNYSE:PFSI is trading in a tight ascending triangle and was holding very well in the past few weeks when the market pulled back. The stock is about break out higher, any increase in volume will be very good sign. The stock should target 90$, stop daily close below 61.5$.
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This is only my own view and not financial advice, do your own analysis before buying or selling
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PFSI:NYSE - PENNYMAC - Benefiting from US housing boom.As mortgage brokers PennyMac has been benefiting from the strong USA housing resurgence. Existing home sales rose by 10.5% y-o-y to a seasonally adjusted annual rate of 6 million units in August 2020, according to the National Association of Realtors (NAR). Likewise, new homes sold soared 43.2% y-o-y to a seasonally-adjusted annual rate of 1,011,000 units in August 2020, according to the US Census Bureau. Worth a look.
$PFSI - thinking to replay call optionThis is a strong stock - road out September slump like a champ, where other stocks fell out of their channels
I have dipped into this stock a few times for short call option gains.
Thinking of taking a chance on a this one again. I always buy with 3 months of runway on calls and willing to sell within days if I make the goal.
PFSI likely to blow up tomorrowPennyMac Financial Services is one I already owned $1000 of, because it was already one of the cheapest booming companies out there, with a PEG ratio of just 0.48. It's looking even better after today's earnings report, with big beats on both earnings and revenue. Unfortunately, I can't seem to get a buy order filled after hours.