NYSE$PFSI

PennyMac Financial Services Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

PennyMac Financial reported record earnings driven by increases in income from production and servicing segments.

PennyMac Financial Services, Inc. reported a record third quarter with a net income of $535.2 million, or $7.03 per share, on revenue of $1.1 billion. The company's servicing portfolio grew to over $400 billion, and production income saw significant increases across all channels.

  • Record earnings driven by increases in income from both production and servicing segments.
  • Loan production activity totaled $54.2 billion in UPB.
  • Servicing portfolio grew to over $400 billion in UPB.
  • More than 6,000 PennyMac employees throughout operations across the country.

Headline financials

Total Revenue

-$7.93M

Previous: $29.5M-126.9%
EPS (adj)

$7.03

Previous: $1.51+365.6%
Capital Expenditures

-$5.58M

Previous: -$5.53M-0.9%
Free Cash Flow

$530M

Previous: $116M+356.8%
Net Income

$535M

Previous: $121M+340.6%
Operating Income

-$408M

Previous: -$250M-63.5%
Gross Profit

-$7.93M

Previous: $29.5M-126.9%
Cash & Equivalents

$529M

Previous: $202M+162.4%
Total Assets

$31.2B

Previous: $9.3B+235.2%
Stock-Based Comp

$7.1M

Previous: $8.94M-20.6%

Revenue & EPS history

PennyMac · Revenue · Quarterly

-$7.93M

Q3 2020-126.9%vs Q3 2019
Beat estimate in 1 of 16 quarters(6%)
ActualEstimate

Revenue by segment

PennyMac · $1.11B total across 2 segments · Q3 2020

  • Production Segment
    $839M
  • Servicing Segment
    $271M

Forward guidance

PennyMac Financial expects its exceptional financial performance to persist through 2021, driven by growth in direct lending and continued loss mitigation activities in its servicing business, despite the uncertain macroeconomic outlook.

Tailwinds

  • Leading loan production business historically oriented to the purchase market.
  • Servicing portfolio of nearly 1.9 million customers.
  • Expected growth in direct lending.
  • Continued loss mitigation activities in servicing business.
  • Long track record of consistent profitability and value creation.

Headwinds

  • Macroeconomic outlook remains uncertain.

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 Q3 2020

Historical avgQ3 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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