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Here's What Key Metrics Tell Us About PennyMac (PFSI) Q4 Earnings

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PennyMac Financial (PFSI - Free Report) reported $470.11 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 29.9%. EPS of $2.88 for the same period compares to $1.76 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $523.86 million, representing a surprise of -10.26%. The company delivered an EPS surprise of -5.57%, with the consensus EPS estimate being $3.05.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how PennyMac performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net revenues- Net gains on loans held for sale at fair value: $222.04 million versus $222.44 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +49.3% change.
  • Net revenues- Net loan servicing fees: $189.27 million versus the three-analyst average estimate of $240.95 million. The reported number represents a year-over-year change of +16.6%.
  • Net revenues- Loan servicing fees: $472.56 million compared to the $461.96 million average estimate based on three analysts.
  • Net revenues- Management fees from PennyMac Mortgage Investment Trust: $7.15 million versus $7.73 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1.4% change.
  • Net revenues- Fulfillment fees from PennyMac Mortgage Investment Trust: $6.36 million versus $10.32 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +28.9% change.
  • Net revenues- Loan origination fees: $57.82 million versus the three-analyst average estimate of $46.96 million. The reported number represents a year-over-year change of +51.9%.
  • Net revenues- Net interest income: -$17.25 million versus -$8.50 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +210.3% change.
  • Net revenues- Other: $4.72 million compared to the $3.87 million average estimate based on two analysts. The reported number represents a change of -23.6% year over year.
View all Key Company Metrics for PennyMac here>>>

Shares of PennyMac have returned +9.8% over the past month versus the Zacks S&P 500 composite's +1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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