PMT Earnings Prediction
The chart below shows how PMT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PMT sees a -1.72% change in stock price 10 days leading up to the earnings, and a +2.61% change 10 days following the report. On the earnings day itself, the stock moves by +0.23%. This data can give you a slight idea of what to expect for the next quarter's release.
PMT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
62.16M
-77.00%
-76.54%
Gross Margin
--
--
--
Operating Margin
--
--
--
Net Margin
74.86%
282.33%
379.26%
EPS
0.42
10.53%
16.67%
No Data Available
PMT Earnings Analysis
PennyMac Mortgage Investment Trust Corporation (PMT.N) Earnings Conference Call
Positive
Return on Equity Performance: PMT generated a 10% return on equity in Q4 2024, with net income to common shareholders of $36 million, translating to diluted earnings per share of $0.41.
Consistent Dividend Payments: The company declared a 4th quarter common dividend of $0.40 per share, maintaining consistent dividend payments despite market volatility.
Return on Common Equity: For the full year 2024, PMT achieved a return on common equity of 8%, with net income attributable to common shareholders totaling $119 million.
MSR Asset Value Increase: The fair value of PMT's MSR asset increased to $3.9 billion at the end of Q4, reflecting strong underlying fundamentals and low delinquency rates.
Investment Retention Strategy: PMT retained $52 million in new investments from two securitizations of agency eligible investor loans, with expected returns in the low to mid teens.
Negative
Correspondent Loan Acquisition Decline: Correspondent loans acquired for PMT's account totaled $3,500,000,000 in Q4, down 41% from the prior quarter due to PMT retaining a smaller percentage of the conventional conforming correspondent loan production.
Correspondent Loan Volume Growth: Total correspondent loan acquisition volume was $28,000,000,000 in Q4, up 9% from the prior quarter, indicating a market growth that PMT did not fully capitalize on.
Net Income Increase Analysis: PMT's net income across its strategies, excluding market driven value changes, was $51,000,000, up from $35,000,000 in the prior quarter, but driven primarily by decreased realization of MSR cash flows and correspondent production income.
Fulfillment Fee Rate Decline: The weighted average fulfillment fee rate decreased to 18 basis points, down from 19 basis points in the prior quarter, indicating a decline in profitability from correspondent production.
Servicing Advances Increase: Servicing advances outstanding increased to $105,000,000 from $71,000,000 at September 30, indicating rising costs associated with servicing obligations.
PMT FAQs
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PMT Earning Call Sentiment
Earnings call transcript: PennyMac Mortgage beats Q4 2024 expectations
PMT.N
0.3%Positive
The earnings call summary presents mixed signals: strong EPS and net income growth, low delinquency rates, and increased securitization activity are positive. However, the decline in correspondent loans acquired, potential liquidity risks, and economic challenges like rising mortgage rates present concerns. The Q&A section highlighted uncertainties in GSE reform and liquidity, adding to the cautious sentiment. With a market cap of $1.19 billion, the stock is likely to experience moderate volatility, resulting in a neutral prediction (-2% to 2%) over the next two weeks.