NYSE$PMT

PennyMac Mortgage Investment Trust · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported net income attributable to common shareholders with strong correspondent segment results and continued improvement in the fair value of government-sponsored enterprise (GSE) credit risk transfer (CRT) investments.

PennyMac Mortgage Investment Trust reported a net income of $65.4 million, or $0.67 per common share on a diluted basis, for the first quarter of 2021. The results were driven by strong correspondent segment performance and improvements in the fair value of GSE credit risk transfer investments.

  • Net income attributable to common shareholders was $65.4 million.
  • Correspondent segment results were strong.
  • Fair value of GSE credit risk transfer (CRT) investments improved due to credit spread tightening.
  • Book value per common share increased to $20.90 at the end of the quarter.

Headline financials

Total Revenue

-$38.7M

Previous: -$8.95M-332.9%
EPS (adj)

$0.67

Previous: $3.73-82.0%
Free Cash Flow

$71.6M

Previous: -$595M+112.0%
Net Income

$71.6M

Previous: -$595M+112.0%
Operating Income

-$152M

Previous: -$90.6M-67.3%
Gross Profit

-$38.7M

Previous: -$8.95M-332.9%
Cash & Equivalents

$92.8M

Previous: $1.1B-91.6%
Total Assets

$12.5B

Previous: $11.9B+5.1%
Stock-Based Comp

$1.74M

Previous: $186K+834.4%

Revenue & EPS history

PennyMac · Revenue · Quarterly

-$38.7M

Q1 2021+332.9%vs Q1 2020
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Revenue by segment

PennyMac · $201M total across 4 segments · Q1 2021

  • Credit Sensitive Strategies
    $139M+114.4%
  • Correspondent Production
    $107M-4.6%
  • Corporate
    $626K+59.7%
  • Interest Rate Sensitive Strategies
    -$44.8M-113.2%

Forward guidance

PennyMac Mortgage Investment Trust is uniquely positioned to capitalize on the current environment characterized by elevated production volumes. Changes to the GSE preferred stock purchase agreements limiting cash window deliveries are expected to make well-capitalized correspondent aggregators like PMT increasingly important to a healthy mortgage market.

Tailwinds

  • PMT is uniquely positioned to capitalize on the current environment.
  • Changes to GSE preferred stock purchase agreements will benefit PMT.
  • PMT's role as a well-capitalized correspondent aggregator is increasingly important.
  • Strong correspondent production segment results expected to continue.
  • Continued improvement in the fair value of credit risk transfer investments is anticipated.

Headwinds

  • Evolving mortgage landscape presents uncertainties.
  • Potential impacts from changes in interest rates.
  • Market volatility could affect hedge costs.
  • Prepayment activity may impact investment values.
  • Dependence on PennyMac Financial Services, Inc. for management and servicing poses potential conflicts of interest.

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 Q1 2021

Historical avgQ1 2021

-0.9%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+1.2%

Avg return

30 days after

42%

28 / 66 earnings

Positive

+16.4%

Q3 2023

Best reaction

-14.3%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-9.1%-11.3%-16.2%
Q4 2025-10.8%-8.4%-9.3%
Q3 2025+8.4%+7.7%+8.3%
Q2 2025-0.2%-0.1%+0.6%
Q1 2025-6.9%-4.5%-7.5%
Q4 2024+5.5%+5.1%+13.7%
Q3 2024-2.1%-1.5%-3.4%
Q2 2024-8.1%-5.1%-5.4%
Q1 2024+1.7%+0.7%-2.4%
Q4 2023-2.6%-4.1%-0.4%
Q3 2023+16.4%+19.9%+30.5%
Q2 2023-10.1%-11.5%-10.1%
Q1 2023+7.3%+1.7%-1.2%
Q4 2022-3.1%-6.7%-14.7%
Q3 2022+10.6%+8.7%+21.1%
Q2 2022-2.4%-0.2%-8.3%
Q1 2022-3.0%-3.9%+0.7%
Q4 2021-6.2%-4.0%-9.3%
Q3 2021-4.2%-6.6%-11.2%
Q2 2021-1.3%-3.6%+0.2%
Q1 2021-1.6%-5.2%-1.0%
Q4 2020+1.9%+0.3%+2.4%
Q3 2020+0.3%+7.7%+15.7%
Q2 2020-8.2%-5.2%-12.5%
Q1 2020+3.7%-5.9%+49.8%
Q4 2019+0.0%-1.2%-9.0%
Q3 2019+1.0%-0.9%+1.4%
Q2 2019-0.4%-1.2%-1.2%
Q1 2019+2.3%-0.9%-1.0%
Q4 2018+4.5%+0.6%+0.1%
Q3 2018+5.8%+6.2%+9.0%
Q2 2018+3.9%+2.8%+4.6%
Q1 2018+4.2%+2.9%+6.7%
Q4 2017+4.4%+5.5%+8.9%
Q3 2017-6.2%-7.6%-3.0%
Q2 2017-3.1%-1.2%-1.8%
Q1 2017-1.0%-2.7%+0.5%
Q4 2016-2.6%-2.2%-0.9%
Q3 2016+6.0%+8.7%+8.1%
Q2 2016-9.0%-6.3%-5.5%
Q1 2016+4.6%
Q4 2015-14.3%
Q3 2015+3.5%
Q2 2015-6.9%
Q1 2015-10.2%
Q4 2014-6.6%
Q3 2014-0.2%
Q2 2014+4.0%
Q1 2014-6.7%
Q4 2013-0.3%
Q3 2013-4.5%
Q2 2013+4.0%
Q1 2013-1.1%
Q4 2011+0.6%
Q4 2012-2.7%
Q3 2012+0.6%
Q2 2012+0.6%
Q1 2011+3.7%
Q1 2012+1.2%
Q4 2009-1.4%
Q3 2011-0.4%
Q3 2010-0.4%
Q2 2010-4.1%
Q2 2011-4.1%
Q4 2010-4.1%
Q1 2010+2.8%

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