NYSE$PMT

PennyMac Mortgage Investment Trust · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

PennyMac reported net income for Q2 2020, driven by record Correspondent Production segment results and partial recovery in the fair value of GSE credit risk transfer investments.

PennyMac Mortgage Investment Trust reported a net income attributable to common shareholders of $458.4 million, or $4.51 per common share on a diluted basis, for the second quarter of 2020. This was driven by record Correspondent Production segment results and a partial recovery in the fair value of government-sponsored enterprise (GSE) credit risk transfer (CRT) investments.

  • Net income attributable to common shareholders was $458.4 million, a significant increase from the prior quarter's net loss of $600.9 million.
  • Book value per common share was $19.39 at June 30, 2020, up from $15.16 at March 31, 2020.
  • Conventional correspondent loan production totaled $18.9 billion in unpaid principal balance (UPB), up 17 percent from the prior quarter and up 76 percent from the second quarter of 2019.
  • CRT deliveries totaled $1.8 billion in UPB, resulting in a firm commitment to purchase $48 million of new CRT securities.

Headline financials

Total Revenue

-$20.2M

Previous: $5.9M-443.2%
EPS (adj)

$4.51

Previous: $0.50+802.0%
Free Cash Flow

$465M

Previous: $44.2M+950.4%
Net Income

$465M

Previous: $44.2M+950.4%
Operating Income

-$114M

Previous: -$61.4M-85.8%
Gross Profit

-$20.2M

Previous: $5.9M-443.2%
Cash & Equivalents

$346M

Previous: $77.7M+345.4%
Total Assets

$9.08B

Previous: $9.47B-4.0%
Stock-Based Comp

$868K

Previous: $1.42M-38.7%

Revenue & EPS history

PennyMac · Revenue · Quarterly

-$20.2M

Q2 2020-443.2%vs Q2 2019
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Revenue by segment

PennyMac · $557M total across 3 segments · Q2 2020

  • Credit Sensitive Strategies
    $460M
  • Correspondent Production
    $198M
  • Interest Rate Sensitive Strategies
    -$101M

Forward guidance

Looking ahead, we project book value growth as we expect the earnings potential of PMT’s investment strategies to exceed the current dividend level.

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

-0.9%

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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