PennyMac rallies on big earnings beat

PennyMac Financial Services

28/10/2022 16:14

** PennyMac Financial Services Inc's  PFSI.N  shares up
14.0% at $53.82 after results handily beat expectations
    ** PFSI on course for biggest one-day gain since Apr 2020
    ** Mortgage firm late Thurs reported Q3 GAAP EPS of $2.46
and rev of $476 mln, above Refinitiv IBES consensus of $407 mln
 urn:newsml:reuters.com:*:nBw4QnXT4a
    ** Co says book value/sh was $68.26 at end-Sept, up from
$65.38 at end-Jun
    ** Piper Sandler boosted PT by $4 to $82, saying earnings
beat primarily driven by higher interest income on custodial
deposits and lower operating expenses
    ** Piper says operating EPS is $1.52, subtracting benefit of
fair value marks on mortgage servicing rights (MSR's), net of
hedging, topping its estimate of $1.13
    ** Wedbush raises its PT by $5 to $70 to align with current
book value, while Wells Fargo trims PT by $5 to $54
    ** Avg rating among 8 analysts covering PFSI is "buy" and
median PT is $65 - Refinitiv
    ** With move on Fri, PFSI down 23% YTD vs PHLX Housing
Index's  .HGX  ~29% decline
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))