PennyMac Financial Services Inc. (PFSI) experienced a sharp intraday decline of 30.37% on Friday, as the stock price plummeted during the trading session.

The significant drop follows the release of the company's disappointing fourth-quarter financial results, which missed analyst expectations on both earnings and revenue. The mortgage lender reported quarterly earnings per share of $1.97, falling well short of the FactSet consensus estimate of $3.10, while revenue came in at $538 million versus expectations of $642.5 million.

Increased industry capacity built ahead of lower interest rates has intensified competition in mortgage origination, capping expected gains in production margins. Management cited increased competition, margin compression, fast prepayment speeds, and policy-driven FHA delinquency lags as key challenges facing the company.