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PennyMac (PFSI) to Report Q1 Earnings: What's in the Offing?
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PennyMac Financial Services, Inc. (PFSI - Free Report) is scheduled to report first-quarter 2020 results on May 7 after the bell. The company’s revenues and earnings are projected to reflect year-over-year increases.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results reflected growth in revenues and higher expenses.
The company has an impressive earnings surprise history. Its earnings surpassed estimates in three of the trailing four quarters and missed in the other, the average positive beat being 13.4%.
Further, the company’s activities in the first quarter were adequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate of $3.11 for earnings moved up 20.1%, over the last 30 days. The figure indicates a year-over-year increase of a whopping 436.2%.
PennyMac Financial Services, Inc. Price and EPS Surprise
Let’s see how things have shaped up for this announcement.
The company does not have the right combination of the two key ingredients for a possible earnings beat — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold).
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for the stock is currently pegged at 0.00%.
Zacks Rank: PennyMac currently sports a Zacks Rank of 1, which increases the predictive power of ESP. But we also need to have a positive ESP to be confident of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors
PennyMac’s top line is likely to have benefited from increase in mortgage loan originations and refinancing activities in the first quarter on lower mortgage rates.
However, the company’s other investments portfolio’s interest income might have been affected due to relatively lower interest rates. The Zacks Consensus Estimate for quarterly sales of $664.5 million reflects a 168.2% surge from the year-ago reported figure.
Moreover, as salaries and benefit costs continue to rise, overall expenses are expected to have flared up in the soon-to-be-reported quarter. Also, the company’s efforts to expand into new markets and products might have inflated expenses.
Among other finance stocks, Regional Management Corp. (RM - Free Report) , Fidelity National Information Services, Inc. (FIS - Free Report) and Main Street Capital Corporation (MAIN - Free Report) are slated to release results on May 7.
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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PennyMac (PFSI) to Report Q1 Earnings: What's in the Offing?
PennyMac Financial Services, Inc. (PFSI - Free Report) is scheduled to report first-quarter 2020 results on May 7 after the bell. The company’s revenues and earnings are projected to reflect year-over-year increases.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results reflected growth in revenues and higher expenses.
The company has an impressive earnings surprise history. Its earnings surpassed estimates in three of the trailing four quarters and missed in the other, the average positive beat being 13.4%.
Further, the company’s activities in the first quarter were adequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate of $3.11 for earnings moved up 20.1%, over the last 30 days. The figure indicates a year-over-year increase of a whopping 436.2%.
PennyMac Financial Services, Inc. Price and EPS Surprise
PennyMac Financial Services, Inc. price-eps-surprise | PennyMac Financial Services, Inc. Quote
Let’s see how things have shaped up for this announcement.
The company does not have the right combination of the two key ingredients for a possible earnings beat — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold).
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for the stock is currently pegged at 0.00%.
Zacks Rank: PennyMac currently sports a Zacks Rank of 1, which increases the predictive power of ESP. But we also need to have a positive ESP to be confident of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors
PennyMac’s top line is likely to have benefited from increase in mortgage loan originations and refinancing activities in the first quarter on lower mortgage rates.
However, the company’s other investments portfolio’s interest income might have been affected due to relatively lower interest rates. The Zacks Consensus Estimate for quarterly sales of $664.5 million reflects a 168.2% surge from the year-ago reported figure.
Moreover, as salaries and benefit costs continue to rise, overall expenses are expected to have flared up in the soon-to-be-reported quarter. Also, the company’s efforts to expand into new markets and products might have inflated expenses.
Among other finance stocks, Regional Management Corp. (RM - Free Report) , Fidelity National Information Services, Inc. (FIS - Free Report) and Main Street Capital Corporation (MAIN - Free Report) are slated to release results on May 7.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>