Mortgage REIT PennyMac Mortgage Investment Trust (NYSE: PMT) will be announcing earnings results this Tuesday afternoon. Here’s what you need to know.
PennyMac Mortgage Investment Trust missed analysts’ revenue expectations by 26.1% last quarter, reporting revenues of $70.2 million, down 1.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Is PennyMac Mortgage Investment Trust a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting PennyMac Mortgage Investment Trust’s revenue to grow 20.1% year on year to $97.15 million, a reversal from the 50.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PennyMac Mortgage Investment Trust has missed Wall Street’s revenue estimates six times over the last two years.
Looking at PennyMac Mortgage Investment Trust’s peers in the banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. WaFd Bank’s revenues decreased 1.2% year on year, missing analysts’ expectations by 3%, and First Horizon reported revenues up 7.5%, topping estimates by 7.7%. WaFd Bank’s stock price was unchanged after the resultswhile First Horizon was down 13.3%.
Read our full analysis of WaFd Bank’s results here and First Horizon’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.9% on average over the last month. PennyMac Mortgage Investment Trust is down 2.4% during the same time and is heading into earnings with an average analyst price target of $13.43 (compared to the current share price of $11.65).
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