Mortgage REIT PennyMac Mortgage Investment Trust (NYSE:PMT) will be reporting earnings this Tuesday after market close. Here’s what to look for.
PennyMac Mortgage Investment Trust missed analysts’ revenue expectations last quarter, reporting revenues of $93.56 million, down 13.3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income 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, the market is expecting PennyMac Mortgage Investment Trust’s revenue to grow 118% year on year, a reversal from the 40.1% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at PennyMac Mortgage Investment Trust’s peers in the thrifts & mortgage finance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. WaFd Bank delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 4%, and Northwest Bancshares reported revenues up 12.1%, topping estimates by 0.8%. WaFd Bank traded up 8.4% following the results while Northwest Bancshares was also up 5%.
Read our full analysis of WaFd Bank’s results here and Northwest Bancshares’s results here.
There has been positive sentiment among investors in the thrifts & mortgage finance segment, with share prices up 4.5% on average over the last month. PennyMac Mortgage Investment Trust is up 2.8% during the same time and is heading into earnings with an average analyst price target of $13.14 (compared to the current share price of $12.29).
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