PennyMac Financial Misses Q4 Earnings Estimates Despite Revenue Growth

LOS ANGELES, Calif. — PennyMac Financial Services (PFSI) reported its fourth-quarter earnings on Thursday, January 30, 2025, missing analyst expectations despite a year-over-year revenue increase. The mortgage finance company posted earnings per share (EPS) of $2.88, falling short of the estimated $3.02 by 5%. Revenue, however, rose by $108.17 million compared to the same period last year.

The earnings miss comes after a strong third quarter in 2024, where PennyMac Financial exceeded EPS estimates by $0.59. Despite that performance, the company’s stock price dropped 3% the following day. This quarter’s results continue a pattern of mixed financial performance for the company.

Historical data shows PennyMac Financial’s fluctuating earnings trajectory. In Q3 2024, the company reported an EPS of $3.49 against an estimate of $2.90, while revenue fell short at $411.83 million compared to the projected $511.41 million. Similarly, in Q2 2024, the company posted an EPS of $2.67 versus an estimate of $2.58, with revenue of $406.13 million against a forecast of $466.57 million.

“The Q4 results reflect ongoing challenges in the mortgage sector, despite the company’s efforts to streamline operations,” said a financial analyst who requested anonymity. “Revenue growth is a positive sign, but the earnings miss highlights underlying pressures.”

PennyMac Financial’s stock performance has been closely watched by investors, particularly given its volatile earnings history. The company’s ability to navigate a challenging interest rate environment and shifting mortgage demand will be critical in the coming quarters.

For investors tracking PennyMac Financial’s performance, the company’s next earnings report is anticipated to provide further insights into its financial health and strategic direction.