Mortgage REIT PennyMac Mortgage Investment Trust (NYSE: PMT) will be reporting earnings this Tuesday after the bell. Here’s what to look for.
PennyMac Mortgage Investment Trust missed analysts’ revenue expectations by 52.7% last quarter, reporting revenues of $44.47 million, down 40.1% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ tangible book value per share estimates.
Is PennyMac Mortgage Investment Trust a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting PennyMac Mortgage Investment Trust’s revenue to grow 33.5% year on year to $95.05 million, a reversal from the 21.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
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 six times over the last two years.
Looking at PennyMac Mortgage Investment Trust’s peers in the banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Citigroup delivered year-on-year revenue growth of 8%, beating analysts’ expectations by 3.5%, and Texas Capital Bank reported revenues up 15.2%, topping estimates by 2.7%. Citigroup traded up 2.9% following the results while Texas Capital Bank was also up 4.8%.
Read our full analysis of Citigroup’s results here and Texas Capital Bank’s results here.
There has been positive sentiment among investors in the banks segment, with share prices up 7.7% on average over the last month. PennyMac Mortgage Investment Trust’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $13.86 (compared to the current share price of $12.51).
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