PennyMac Disappoints, Shares Fall

PennyMac Financial Services Inc. in Westlake Village reported first-quarter earnings and revenue Thursday that fell short of analysts’ expectations, causing a 7.5 percent drop in its share price. The non-bank mortgage lender had net income of $54 million (47 cents a share), compared to $27 million (23 cents a share) a year ago. While a healthy increase, it was less than the 64 cents a share analysts on average expected, according to Thomson Financial Network. PennyMac’s $205 million first-quarter revenue, up from $143 million a year ago, also fell short of the $230 million analysts estimated. “PennyMac Financial’s first-quarter results reflect the combination of an abrupt rise in mortgage rates at the end of last year and the typical seasonal slowdown in origination volumes,” Chief Executive Officer David Spector said in a statement. “With respect to mortgage rates, we have recently seen a decline in rates that is expected to improve the second quarter’s mortgage origination outlook. As it pertains to seasonality, strong pending home sales bode well for home buying activity this spring and summer.” PennyMac (PFSI) reported its results on Thursday. Shares closed Friday down $1.30, or 7.5 percent, to $16.05 on the New York Stock Exchange.