NYSE$PFSI

PennyMac Financial Services Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

PennyMac Financial reported Q4 2019 results with net income of $152.7 million and revenue of $490.4 million.

PennyMac Financial Services, Inc. reported a strong fourth quarter and full-year 2019, with record pretax income and operating earnings driven by the Production segment and solid performance in the Servicing segment. Net income for the fourth quarter was $152.7 million, or $1.88 per share on a diluted basis, on revenue of $490.4 million. The company's book value per share increased, and the Board of Directors declared a cash dividend of $0.12 per share.

  • Record pretax income and operating earnings driven by strong Production segment results and operating performance in the Servicing segment.
  • Production segment pretax income was $203.3 million, up 700 percent from the fourth quarter of 2018, driven by record loan production volumes across all channels.
  • Total loan acquisitions and originations were $42.4 billion in unpaid principal balance (UPB), up 118 percent from the fourth quarter of 2018.
  • PFSI expects to earn a mid-teens return on equity across different market environments and a higher ROE in 2020.

Headline financials

Total Revenue

$490M

Previous: $251M+95.2%
EPS (adj)

$1.88

Previous: $0.52+261.5%
Capital Expenditures

$590K

Previous: $4.5M-86.9%
Free Cash Flow

-$556M

Previous: -$165M-237.3%
Net Income

$153M

Previous: $38.7M+294.1%
Operating Income

$203M

No prior period
Gross Profit

$247M

Previous: $97.5M+153.3%
Cash & Equivalents

$189M

Previous: $156M+20.9%
Total Assets

$10.2B

Previous: $7.48B+36.4%
Stock-Based Comp

$5.65M

Previous: $4.49M+25.9%

Revenue & EPS history

PennyMac · Revenue · Quarterly

$490M

Q4 2019+95.2%vs Q4 2018
Beat estimate in 1 of 16 quarters(6%)
ActualEstimate

Revenue by segment

PennyMac · $479M total across 2 segments · Q4 2019

  • Production Segment
    $353M
  • Servicing Segment
    $125M

Forward guidance

PFSI expects to earn a mid-teens return on equity across different market environments; however, we expect PFSI to deliver a higher ROE in 2020.

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 Q4 2019

Historical avgQ4 2019

+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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