PennyMac Warns Q3 Production Income to Fall as Rates Climb
PFSI is trading near its 52-week low of $69.12 (1.8% above the low).
Summary
PennyMac expects Q3 production pretax income to decline quarter-over-quarter, driven by a 50bps rise in mortgage rates since June 30 and lower pull-through-adjusted lock volume. Revenue margin is guided to 75-85 bps versus 77 bps in Q2. Servicing pretax income is expected to improve, while corporate pretax loss should be similar to last year. This follows the Q2 84% net income plunge and the 8-K filed earlier today; the stock trades near its 52-week low.
At the time of this announcement, PFSI was trading at $70.36 on NYSE in the Finance sector, with a market capitalization of approximately $3.7B. The 52-week trading range was $69.12 to $160.36. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.