NYSE$PFSI

PennyMac Financial Services Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

PennyMac Financial Services reported record earnings, driven by strong production and servicing results, which were partially offset by fair value losses on mortgage servicing rights and associated hedging.

PennyMac Financial Services, Inc. reported a net income of $352.7 million for the second quarter of 2020, with diluted earnings per share of $4.39, on revenue of $821.6 million.

  • Pretax income was $480.4 million, up 16 percent from the prior quarter and 382 percent from the second quarter of 2019.
  • Record earnings were driven by core production and servicing results, partially offset by fair value losses on mortgage servicing rights (MSRs) and associated hedging and other losses.
  • In June, approximately 7 million shares of PFSI’s common stock were repurchased from The BlackRock Foundation for approximately $237.2 million at $34.00 per share.
  • The Board of Directors declared a second quarter cash dividend of $0.15 per share, a 25 percent increase from the prior quarter.

Headline financials

Total Revenue

-$3.77M

Previous: $20.1M-118.7%
EPS (adj)

$4.39

Previous: $0.92+377.2%
Capital Expenditures

-$3.47M

Previous: -$4.41M+21.2%
Free Cash Flow

$349M

Previous: $68.3M+411.3%
Net Income

$353M

Previous: $72.7M+385.1%
Operating Income

-$356M

Previous: -$190M-87.1%
Gross Profit

-$3.77M

Previous: $20.1M-118.7%
Cash & Equivalents

$910M

Previous: $232M+292.4%
Total Assets

$23.2B

Previous: $8.4B+176.6%
Stock-Based Comp

$6.76M

Previous: $5.65M+19.6%

Revenue & EPS history

PennyMac · Revenue · Quarterly

-$3.77M

Q2 2020-118.7%vs Q2 2019
Beat estimate in 1 of 16 quarters(6%)
ActualEstimate

Revenue by segment

PennyMac · $811M total across 2 segments · Q2 2020

  • Production Segment
    $738M
  • Servicing Segment
    $72.7M

Forward guidance

PennyMac expects its exceptional financial performance to persist into 2021 given the present market environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.6%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.7%

Avg return

30 days after

44%

23 / 52 earnings

Positive

+19.8%

Q2 2016

Best reaction

-33.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%+0.8%-7.3%
Q4 2025-33.2%-35.8%-38.6%
Q3 2025+6.3%+10.0%+4.4%
Q2 2025-1.3%-2.9%+14.9%
Q1 2025-2.7%-1.7%-1.8%
Q4 2024-8.8%-8.3%-9.7%
Q3 2024-4.7%-3.9%-0.9%
Q2 2024-2.7%+0.7%+0.3%
Q1 2024-7.1%-5.8%-1.6%
Q4 2023+6.9%+2.9%-2.1%
Q3 2023+10.4%+6.7%+22.7%
Q2 2023-6.9%-8.5%-15.6%
Q1 2023-2.4%-6.5%-5.6%
Q4 2022-3.9%-3.9%-8.7%
Q3 2022+16.9%+11.0%+22.4%
Q2 2022+4.1%+1.0%-6.1%
Q1 2022-4.7%-8.2%-3.9%
Q4 2021-0.8%+2.1%-0.9%
Q3 2021+3.0%+2.4%+4.3%
Q2 2021+10.9%+7.6%+5.3%
Q1 2021-5.0%-3.3%+1.4%
Q4 2020+2.8%-1.0%-1.8%
Q3 2020-1.2%-0.5%+5.7%
Q2 2020+3.1%+4.6%+1.1%
Q1 2020+8.1%+1.9%+26.0%
Q4 2019+8.1%+5.0%+4.0%
Q3 2019-1.2%-2.8%+9.3%
Q2 2019+5.3%+8.7%+23.2%
Q1 2019+5.6%+5.7%-4.0%
Q4 2018+4.8%+4.5%+6.4%
Q3 2018-0.4%+4.1%+2.6%
Q2 2018+14.6%+11.2%+10.4%
Q1 2018-6.7%-2.6%-5.2%
Q4 2017+1.2%+3.2%+12.4%
Q3 2017-0.3%+0.3%+14.2%
Q2 2017-3.7%-2.0%-3.4%
Q1 2017-6.7%-5.5%-3.8%
Q4 2016+10.6%+11.8%+5.0%
Q3 2016+4.7%+5.6%+4.4%
Q2 2016+19.8%+20.8%+28.5%
Q1 2016-5.1%
Q4 2015-3.8%
Q3 2015-1.0%
Q2 2015-3.1%
Q1 2015+0.3%
Q4 2014-4.3%
Q3 2014-3.3%
Q2 2014+0.1%
Q1 2014+8.6%
Q4 2013-0.7%
Q3 2013-1.7%
Q2 2013-0.2%
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012

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