PennyMac Financial reports Q1 EPS 57c, consensus 97c

Reports Q1 revenue $302.86M, consensus $316.42M. "In one of the most challenging mortgage origination markets in recent history, PennyMac Financial delivered solid net income and continues to distinguish itself as a best-in-class mortgage company," said Chairman and CEO David Spector. "Strong operating profitability in our servicing segment was partially offset by net fair value declines on MSRs and hedges primarily due to elevated hedge costs that resulted from higher interest rate volatility. We saw improved margins in our broker direct and correspondent lending channels although production volumes remained low due to seasonality. We are optimistic about the return to profitability in this segment as we enter the typical home buying season and given the work we completed last year to prudently resize our capacity to the current market environment. We also strengthened our balance sheet and capital structure this quarter with the issuance of a $680 million secured term loan from our GMSR financing vehicle at attractive pricing."