PennyMac Profits Soar in Q4

Shares of PennyMac Financial Services Inc. moved higher Friday, one day after the company reported fourth-quarter and full-year results. The Westlake Village originator and investor in mortgage loans reported net income attributable to shareholders of $62.3 million ($2.44 a share) for the quarter ended Dec. 31, compared to net income of $22.7 million ($1) for the same quarter a year ago. Revenue in the quarter shrank 67 percent to $98.6 million. Chief Executive David Spector noted the significance of tax reform in helping the company’s performance. “Earnings were excellent and further benefited from the remeasurement of tax-related items,” Spector said in a statement. “Our production and servicing segments delivered solid earnings.” For full-year 2017, PennyMac had net income of nearly $101 million on revenue of $302 million. Shares of PennyMac (PFSI) closed Friday up 65 cents, or nearly 3.1 percent, to $21.95 on the New York Stock Exchange.