NYSE$PMT

PennyMac Mortgage Investment Trust · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Net income of $15.0 million, or $0.17 per common share on a diluted basis, was reported on net investment income of $71.2 million.

PennyMac Mortgage Investment Trust reported net income attributable to common shareholders of $15.0 million, or $0.17 per common share on a diluted basis, for Q2 2024. The results reflect higher levels of income excluding market-driven value changes, partially offset by net fair value declines.

  • Net income attributable to common shareholders was $15.0 million, with an annualized return on average common equity of 4%.
  • Book value per common share decreased slightly to $15.89 at June 30, 2024.
  • Conventional correspondent loan production volumes for PMT's account totaled $2.2 billion in unpaid principal balance (UPB), up 26 percent from the prior quarter.
  • Creation of $41 million in new mortgage servicing rights (MSRs).

Headline financials

Total Revenue

-$20M

Previous: -$24.7M+19.0%
EPS

$0.17

Previous: $0.16+6.3%
Free Cash Flow

$25.4M

Previous: $24.6M+3.3%
Net Income

$25.4M

Previous: $24.6M+3.3%
Operating Income

-$67.5M

Previous: -$73M+7.6%
Gross Profit

-$20M

Previous: -$24.7M+19.0%
Cash & Equivalents

$131M

Previous: $239M-45.3%
Total Assets

$12.1B

Previous: $13.4B-9.7%
Stock-Based Comp

$827K

Previous: $845K-2.1%

Revenue & EPS history

PennyMac · Revenue · Quarterly

-$20M

Q2 2024-19%vs Q2 2023
Beat estimate in 1 of 15 quarters(7%)
ActualEstimate

Revenue by segment

PennyMac · $163M total across 4 segments · Q3 2023

  • Interest Rate Sensitive Strategies
    $104M-17.3%
  • Credit Sensitive Strategies
    $41.5M+1531.8%
  • Correspondent Production
    $15.2M-44.4%
  • Corporate
    $2.25M+543.4%

Forward guidance

PMT expects to deploy more capital to conventional correspondent production in the third quarter, driving organic growth of MSR investments. The company will continue to monitor the markets for opportunities to deploy capital into bulk MSR packages and other investments at appropriate returns.

Tailwinds

  • Expect to deploy more capital to conventional correspondent production in Q3.
  • Driving organic growth of MSR investments.
  • Continue to monitor the markets for opportunities to deploy capital into bulk MSR packages.
  • Continue to monitor the markets for other investments at appropriate returns.
  • Diversified portfolio of mortgage-related investments with strong underlying fundamentals.

Headwinds

  • Continued interest rate volatility.
  • Net fair value declines, predominantly in the interest rate sensitive strategies.
  • Lower margins in correspondent production.
  • Potential risks associated with market conditions.
  • Competition for attractive risk-adjusted investment opportunities.

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 2024

Historical avgQ2 2024

-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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