PennyMac Financial reports Q3 EPS $3.37, consensus $2.98

Reports Q3 revenue $632.9M, consensus $573.46M. “PennyMac Financial (PFSI) delivered outstanding financial and operational results in the third quarter, with an 18 percent return on equity,” said Chairman and CEO David Spector. “In production, profitability nearly doubled from the prior quarter. The increase reflected strong recapture in our consumer direct lending division combined with the continued expansion of our presence in broker-direct as our partners increasingly recognize the value of entrusting us with their borrowers’ mortgage experience. Our servicing portfolio continues to grow organically, reaching nearly $720 billion in UPB. The strong core performance of the asset was highlighted in the third quarter by the success of our hedging program, which offset MSR fair value declines and demonstrated the financial stability that is central to our operating model.”