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PennyMac Monetary (PFSI) got here out with quarterly earnings of $3.94 per share, beating the Zacks Consensus Estimate of $3.40 per share. This compares to earnings of $5.97 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 15.88%. 1 / 4 in the past, it was anticipated that this mortgage banking and funding administration firm would put up earnings of $3.31 per share when it really produced earnings of $3.80, delivering a shock of 14.80%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates two instances.
The sustainability of the inventory’s rapid value motion based mostly on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
PennyMac shares have misplaced about 14.5% because the starting of the yr versus the S&P 500’s decline of -3.7%.
What’s Subsequent for PennyMac?
Whereas PennyMac has underperformed the market thus far this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified these days.
Empirical analysis reveals a robust correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a formidable monitor document of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for PennyMac: blended. Whereas the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in keeping with the market within the close to future. You’ll be able to see the whole checklist of right this moment’s Zacks #1 Rank (Robust Purchase) shares right here.
It will likely be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $3.03 on $682 million in revenues for the approaching quarter and $13.06 on $2.88 billion in revenues for the present fiscal yr.
Buyers ought to be conscious of the truth that the outlook for the trade can have a cloth impression on the efficiency of the inventory as nicely. By way of the Zacks Trade Rank, Monetary – Mortgage & Associated Companies is at present within the high 37% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
One different inventory from the identical trade, Sixth Road (TSLX), is but to report outcomes for the quarter ended December 2021. The outcomes are anticipated to be launched on February 17.
This enterprise growth firm is anticipated to put up quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of +6%. The consensus EPS estimate for the quarter has remained unchanged during the last 30 days.
Sixth Road’s revenues are anticipated to be $69.02 million, up 11% from the year-ago quarter.
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PennyMac Monetary Companies, Inc. (PFSI): Free Inventory Evaluation Report
Sixth Road Specialty Lending, Inc. (TSLX): Free Inventory Evaluation Report
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