PennyMac (PFSI) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

Analysts on Wall Street project that PennyMac Financial (PFSI) will announce quarterly earnings of $2.34 per share in its forthcoming report, representing an increase of 310.5% year over year. Revenues are projected to reach $422.87 million, increasing 39.6% from the same quarter last year.

The consensus EPS estimate for the quarter has undergone an upward revision of 2.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific PennyMac metrics that are commonly monitored and projected by Wall Street analysts.

Analysts forecast 'Revenue- Net gains on loans held for sale at fair value' to reach $150.05 million. The estimate suggests a change of +43.7% year over year.

Analysts predict that the 'Revenue- Loan origination fees' will reach $34.60 million. The estimate points to a change of +10.2% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenue- Fulfillment fees from PennyMac Mortgage Investment Trust' should come in at $4.88 million. The estimate indicates a change of -59.1% from the prior-year quarter.

View all Key Company Metrics for PennyMac here>>>

Shares of PennyMac have demonstrated returns of -2.4% over the past month compared to the Zacks S&P 500 composite's -4% change. With a Zacks Rank #3 (Hold), PFSI is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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PennyMac Financial Services, Inc. (PFSI) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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