PennyMac Financial Services Inc (PFSI) dropped to a 52-week low of $70.10 on Tuesday, as the mortgage services company posted second-quarter results that fell well short of expectations and triggered further downward revisions from analysts.
The company reported adjusted earnings of $1.39 per share, missing the consensus estimate of $2.40 by $1.01. Revenue came in at $497 million against expectations of $598.72 million, representing a shortfall of roughly $102 million.
Shares had closed the prior session at $68.97 and traded at $70.24 during regular hours, after opening pre-market at $69.00. The stock has fallen 43% over the past year.
Piper Sandler downgraded the stock from Overweight to Neutral and cut its price target from $106 to $86, citing the earnings miss and weakening outlook.
Keefe, Bruyette & Woods maintained an Outperform rating but reduced its price target from $108 to $100. The firm also trimmed its forward earnings projections for fiscal years 2026, 2027 and 2028 by 29%, 23% and 18%, respectively.
According to InvestingPro data, five analysts have revised their earnings estimates downward for the upcoming period. The company remains profitable over the trailing twelve months despite the quarterly miss.
An InvestingPro fair-value estimate placed the stock at $82.12, suggesting roughly 17% upside from the recent trading range.
