PennyMac Climbs 11 Percent on Higher Earnings

Stocks rallied more than 11 percent Friday on the fourth-quarter earnings PennyMac Financial Services Inc. reported late Thursday. The non-bank mortgage lender in Westlake Village reported net income of $114 million ($1 a share) on revenue of $289 million during the quarter, compared to net income of $69 million (58 cents a share) for the prior-year quarter. Analysts on average expected earnings of 82 cents a share on revenue of $248 million, according to Thomson Financial Network. The lender also reported full-year revenue of $932 million, up from $713 million a year ago, and net income of $337 million ($2.94 a share) compared to $248 million ($2.17 a share) for the previous year. Executive Chairman Stanford Kurland said 2016 was a record year for PennyMac and that high mortgage originations and refinancing helped lead the growth. Kurland, who founded PennyMac Financial in 2008 and has been chief executive since 2013, stepped down as chief executive and chairman of PennyMac Mortgage Investment Trust in December. PennyMac (PFSI) shares closed Friday up $1.90, or 11.2 percent, to $18.90 on the New York Stock Exchange.