PennyMac Financial Services Inc. (PFSI) experienced a sharp decline of 23.09% in post-market trading on Thursday. The significant drop followed the release of the company's fourth-quarter financial results.
The mortgage lender reported quarterly earnings per share of $1.97, falling well short of the FactSet consensus estimate of $3.10. Revenue for the quarter came in at $538 million, missing the IBES estimate of $642.5 million. More critically, the company's adjusted pretax profit was $47.8 million, dramatically below analyst expectations of $236.6 million.
These substantial misses on both top and bottom line metrics triggered the negative reaction from investors, reflecting disappointment with the company's quarterly performance relative to market expectations.