PMT - PennyMac Mortgage stock rises after Q1 net income beats estimates

2023-04-28 11:19:47 ET

PennyMac Mortgage Investment ( NYSE: PMT ) stock rose ~6% on Friday following its Q1 results.

Net income attributable to common shareholders was $50.2M, compared to a net loss of -29.58M in Q1 2022. Q1 GAAP EPS of $0.50 surpassed analysts' expectations.

Net investment income (NII) rose +10.4% Y/Y to ~$90.37M, however missed estimates.

"Solid results in PMT’s credit sensitive strategies due to credit spread tightening early in the quarter were partially offset by net fair value declines on MSRs and interest rate hedges, which drove a tax benefit. A key contributor to PMT’s strong performance over the long term has been the sophisticated financing structures we have in place for its long-term assets," said Chairman and CEO David Spector.

Pretax income for the Credit Sensitive Strategies segment was $57.3M on NII of $58M, compared to pretax income of $10.8M on NII of $11.2M in the prior quarter.

Meanwhile, pretax loss from the interest rate sensitive strategies segment was $7M on NII of $14.6M, compared to a pretax loss of -$9.3M on NII of $13.7M in Q4 2022.

PMT's Correspondent Production segment saw pretax income of $1.8M, down from $7.1M in the prior quarter.

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