PFSI

On May 19, 2026, EMG Holdings disclosed a new position in KB Home (NYSE:KBH), acquiring 77,657 shares in a trade estimated at $4.57 million based on quarterly average pricing. According to its SEC filing dated May 19, 2026, EMG Holdings reported purchasing 77,657 shares of KB Home (NYSE:KBH) during the first quarter. The estimated value of this transaction was $4.57 million, based on the quarterly average share price. As of March 31, 2026, the holding was valued at $4.02 million, reflecting the new position and subsequent price movements during the quarter. Top five holdings after the filing: As of May 18, 2026, KB Home shares were priced at $45.64, down 15% over the past year and lagging the S&P 500, which is instead up about 25%. KB Home develops and sells single-family homes, townhomes, and condominiums, with additional offerings in insurance and title services. The firm generates revenue primarily through home sales across multiple U.S. regions, complemented by ancillary financial services. It targets first-time, move-up, and active adult homebuyers in states including California, Texas, Florida, and Arizona. KB Home focuses on residential construction for a diverse range of buyers, including first-time and move-up customers. The company leverages a regional operating model and offers integrated financial and insurance services. Homebuilder stocks have struggled under the weight of high mortgage rates and cautious consumers, but EMG’s new position suggests it still sees value here. Still, KB Home’s latest quarter was a bit uneven on the surface. Revenue fell 23% year over year to $1.08 billion, while diluted earnings per share dropped to $0.52 from $1.49 a year earlier. Gross margins also compressed, with housing gross profit margin sliding to 15.3% from 20.2% as the company leaned on price reductions and incentives to drive demand.However, there were also some encouraging signs beneath the headline numbers. Net orders actually rose 3% to 2,846 homes, cancellation rates improved to 12% from 16%, and KB Home continued aggressively buying back stock, repurchasing $50 million worth of shares during the quarter.For long-term investors, it’s important to remember that housing stocks can be very cyclical. If mortgage rates eventually ease, beaten-down homebuilders could recover faster than many investors currently expect. Before you buy stock in KB Home, consi...

PennyMac Financial Services delivered first quarter results ahead of Wall Street’s revenue and non-GAAP profit expectations, driven by robust execution across its production channels and continued technology enhancements. Management pointed to improved recapture rates in the consumer direct channel and increased revenue per loan as key contributors. CEO David Spector emphasized, “Our optimism is most evident in the production segment, where we are strategically growing in areas that will optimize returns on capital in what remains a dynamic and fragmented market.” Is now the time to buy PFSI? Find out in our full research report (it’s free). Revenue: $583.1 million vs analyst estimates of $551.4 million (10.8% year-on-year growth, 5.7% beat) Adjusted EPS: $2.19 vs analyst estimates of $2.14 (2.3% beat) Adjusted Operating Income: $142.8 million (24.5% margin, 28.4% year-on-year decline) Market Capitalization: $4.59 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Douglas Harter (BTIG) asked about the impact of interest rate volatility on revenue margins and hedging costs. CFO Daniel Perotti explained that while hedging costs increased late in the quarter due to higher volatility, the overall revenue impact was minimal and the company navigated the environment effectively. Kyle Joseph (Stephens) inquired about changes to hedging strategy post-Cenlar acquisition and implications of the Homebuyers Privacy Protection Act. Perotti confirmed no major changes to hedging would occur, and CEO David Spector said the early effect of the new law was generally positive but too soon to fully assess. Bose George (KBW) questioned the reasons for lowering near-term ROE guidance, particularly the balance between technology investment and smaller market size. Spector stated that about two-thirds of the adjustment was due to technology investment and one-third due to a smaller origination market. Mark DeVries (Deutsche Bank) asked if intermediate-term ROEs will remain below historical levels due to tech spend. Spector said the company is making essential investments with the expectation of a meaningful payoff and hopes to see ben...

Shares of Rocket Companies, Inc. RKT gained more than 3.3% in the after-market hours, following the release of its first-quarter 2026 results. Adjusted earnings of 15 cents per share topped the Zacks Consensus Estimate of 13 cents. The bottom line jumped 275% from the year-ago quarter. Adjusted revenues were $2.82 billion, beating the consensus mark of $2.7 billion and rising 107.5% year over year. The quarter also reflected solid origination momentum, with total net rate lock volume of $49.4 billion. Rocket generated total net revenues of $2.94 billion in the quarter, up from $1.10 billion a year ago. The expansion was supported by strength across several revenue lines, rather than a single driver. Net gain on sale of loans totaled $1.38 billion, including $688 million of gain on sale excluding fair value of originated mortgage servicing rights (MSRs) and $688 million tied to fair value of originated MSRs. Loan servicing income (net) was $598 million, as $1.08 billion of servicing fee income was partly offset by a $485 million negative change in the fair value of MSRs. Interest income and other income came in at $507 million and $460 million, respectively. Rocket returned to profitability on a GAAP basis, reporting net income of $297 million or 10 cents per share against a net loss of $212 million or 8 cents per share in the prior-year quarter. The company posted adjusted EBITDA of $738 million, up substantially from $169 million. Total expenses were $2.54 billion, up from $1.32 billion a year ago, reflecting scale-up across operating lines. The quarter reported higher salaries, commissions and team member benefits, marketing and advertising expenses, general and administrative expenses and interest expenses. RKT reported total closed mortgage loan origination volume of $44.7 billion in the first quarter. Total gain on sale margin was 2.74%, indicating healthy economics on production despite a shifting rate backdrop. Excluding correspondent activity, Rocket generated $37.8 billion in closed loan volume, with gain on sale margin improving to 3.22%. This was driven by rising capacity and conversion benefits from AI-driven origination tools. The Direct to Consumer segment’s total net revenues were $2.23 billion, up from $793 million in the prior-year quarter. Contribution margin for the segment was $1.15 billion (up from $407 million), highlighting the earning...

PennyMac Financial Services (PFSI) reported Tuesday Q1 earnings of $1.53 per diluted share, up from

Image source: The Motley Fool. Tuesday, May 5, 2026 at 6 p.m. ET Chief Executive Officer — David Spector Chief Financial Officer — Daniel Perotti Need a quote from a Motley Fool analyst? Email [email protected] David Spector: Thank you, operator. Good afternoon, and thank you to everyone for participating in our first quarter 2026 earnings call. Starting on Slide 3. PMT's first quarter net income was $14 million or $0.16 per diluted common share, representing a 4% annualized return on common equity. These results were impacted by a lower contribution from our interest rate sensitive strategies primarily due to a decrease in servicing fees as a result of seasonality and a larger-than-expected MSR runoff related to higher note rate loans. These impacts were partially offset by improved results in our aggregation and securitization segment. PMT paid a quarterly dividend of $0.40 per share and book value per share on March 31 was $14.98, down 2% from the end of the prior quarter. Turning to Slide 5. I would like to note we have renamed what was previously the Correspondent Production segment to the aggregation and securitization segment. We believe this name more accurately captures the breadth of PMT's participation in the mortgage ecosystem, specifically our focus on aggregating high-quality loans for execution in the secondary market to drive organic asset creation. In total, during the first quarter, PMT purchased $4.3 billion in UPB of loans from PFSI. $2.8 billion in UPB was through its correspondent purchase agreement with PFSI, for which PMT pays fulfillment fees. The remaining $1.5 billion represented loan sales from PFSI to PMT outside of their loan purchase agreement where PMT's private label securitization platform provided optimal secondary market execution for PFSI. Slide 6 highlights the continued success of our organic investment creation engine. Similar to last quarter, we completed 8 private label securitizations totaling $2.8 billion in UPB. This activity resulted in the retention of $190 million of new subordinate bond investments in the credit-sensitive strategies and $12 million of new senior bond investments in the interest rate-sensitive strategies. We also generated $40 million of new MSR investments. Our momentum has continued after quarter end, with 2 additional securitizations completed and another 1 priced totaling $1.1 billion in UPB, and...

PennyMac Mortgage (PMT) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to a loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -55.47%. A quarter ago, it was expected that this specialty finance company would post earnings of $0.41 per share when it actually produced earnings of $0.48, delivering a surprise of +17.07%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. PennyMac Mortgage, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $82.13 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 10.78%. This compares to year-ago revenues of $44.47 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. PennyMac Mortgage shares have lost about 3.5% since the beginning of the year versus the S&P 500's gain of 5.2%. While PennyMac Mortgage has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for PennyMac Mortgage was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete li...

PennyMac Financial (PFSI) came out with quarterly earnings of $2.19 per share, missing the Zacks Consensus Estimate of $2.22 per share. This compares to earnings of $1.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.24%. A quarter ago, it was expected that this mortgage banking and investment management company would post earnings of $3.23 per share when it actually produced earnings of $1.97, delivering a surprise of -39.01%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. PennyMac, which belongs to the Zacks Financial - Mortgage & Related Services industry, posted revenues of $544.98 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.1%. This compares to year-ago revenues of $430.9 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. PennyMac shares have lost about 31.8% since the beginning of the year versus the S&P 500's gain of 5.2%. While PennyMac has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for PennyMac was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the c...

Image source: The Motley Fool. Tuesday, May 5, 2026 at 5 p.m. ET Chairman and Chief Executive Officer — David A. Spector Senior Managing Director and Chief Financial Officer — Daniel O. Perotti David Spector: Thank you, operator. Good afternoon, and thank you to everyone for participating in our first quarter 2026 earnings call. As shown on Slide 3, PennyMac Financial generated net income of $82 million in the first quarter or $1.53 in earnings per diluted share or an 8% annualized return on equity. Excluding the impact of valuation-related changes and transaction expenses related to our acquisition of Cenlar's subservicing business, adjusted EPS was $2.19 per diluted share or an 11% annualized adjusted return on equity. As Dan will expand upon, we continue to optimize our hedging strategies to converge GAAP and adjusted ROEs. While our adjusted return on equity this quarter remained below our longer-term expectations, we remain intensely focused on maximizing returns on invested capital over the near and long term. I am also optimistic regarding the underlying trends in our business, particularly higher recapture rates in consumer direct channel, coupled with increasing revenue per loan. In addition to these positive trends, I will also address initiatives we currently have underway later in this call. Our optimism is most evident in the production segment, where we are strategically growing in areas that will optimize returns on capital in what remains a dynamic and fragmented market. Specifically in the correspondent channel, we are leveraging our leadership position to exercise rigorous pricing discipline on the related MSRs while driving an increase in margins across various products. This pricing discipline, combined with continued growth in our consumer and broker direct channels led to production segment generating its highest level of pretax income in nearly 5 years. In addition, we have 3 distinct production channels: correspondent, broker direct and consumer direct, all of which are operating at significant scale. This diversified platform provides us with multiple complementary avenues for sustainable growth and a unique ability to shift our focus and resources to the channel that offers the most attractive risk-adjusted returns. Turning to Slide 4. Let's review a few additional business updates. During the quarter, we repurchased 560,000 shares...

Production segment achieved its highest pretax income in nearly five years, driven by rigorous pricing discipline in the correspondent channel and growth in direct channels. Management is leveraging a diversified platform across three channels to shift resources toward the most attractive risk-adjusted returns in a fragmented market. The transition to the Vesta loan origination system is complete for new originations, enabling the introduction of AI agents to reduce manual tasks and fulfillment costs. Conventional first-lien refinance recapture rates improved to 22% in Q1 and reached approximately 30% in April, validating the strategy to engage borrowers via real-time data. Servicing operating expenses were reduced to 4.5 basis points of UPB through workforce productivity enhancements and automation of complex tasks. Management characterizes the current phase as an 'offensive' transformation, prioritizing technology-led unit cost reductions to widen the competitive moat. The company is exercising pricing discipline by favoring higher-margin government loans in the correspondent channel to counter aggressive GSE competition. ROE guidance for the second half of 2026 was revised to the low-to-mid teens range, reflecting accelerated technology spending and expectations for lower origination demand. Management expects to achieve high teens to low 20% ROEs over the medium-to-long term through the realization of technology investments and increased scale. The acquisition of Cenlar's subservicing business remains on track to close in the second half of the year, providing increased scale and fee-for-service diversification. Technology spend is expected to remain at near-peak levels through the first half of the year before declining as AI agents are fully deployed across production and servicing. A medium-term goal has been set to reduce servicing costs to $55 per loan annually within the next 24 to 36 months through continued automation. Non-funding debt-to-equity leverage rose to 1.7x, which management identifies as the upper bound of their comfort level, driven by higher interest rates and share repurchases. The company repurchased 560,000 shares for $50 million, citing significant value in the stock at current price levels. Corporate expenses were impacted by $9 million in non-recurring marketing activations related to the Olympic and Paralympic Winter Games. Ac...

WESTLAKE VILLAGE, Calif., May 05, 2026--(BUSINESS WIRE)--PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $82.3 million for the first quarter of 2026, or $1.53 per share on a diluted basis, on total net revenues of $545.0 million. Adjusted net income was $117.7 million and adjusted earnings per share (EPS) was $2.19.1 Book value per share increased to $83.31 from $82.77 at December 31, 2025. PFSI’s Board of Directors declared a first quarter cash dividend of $0.30 per share, payable on May 28, 2026, to common stockholders of record as of May 18, 2026. First Quarter 2026 Highlights Pretax income was $104.7 million, down from $134.4 million in the prior quarter and up slightly from $104.2 million in the first quarter of 2025 Production segment pretax income was $133.6 million, up from $127.3 million in the prior quarter and $61.9 million in the first quarter of 2025 Total loan acquisitions and originations, including those fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT), were $37.0 billion in unpaid principal balance (UPB), down 12% from the prior quarter and up 28% from the first quarter of 2025 Production revenue margins, including fulfillment fees from PMT, were 86 basis points, up from 73 basis points in the prior quarter and 68 basis points in the first quarter of 2025 Total correspondent acquisitions were $24.4 billion in UPB, down 20% from the prior quarter and up 6% from the first quarter of 2025 Broker direct originations were $6.7 billion in UPB, up 3% from the prior quarter and 102% from the first quarter of 2025 Consumer direct originations were $6.0 billion in UPB, up 15% from the prior quarter and 130% from the first quarter of 2025 Total locks, including those for PMT, were $44.8 billion in UPB, down 4% from the prior quarter and up 31% from the first quarter of 2025 Servicing segment pretax income was $12.7 million, down from $37.3 million in the prior quarter and $76.0 million in the first quarter of 2025 Pretax income excluding valuation-related items was $56.7 million, up 25% from the prior quarter Valuation-related items included: $183.0 million in mortgage servicing rights (MSR) fair value gains more than offset by $221.1 million in hedging losses, including $13.8 million in principal-only stripped mortgage-backed security (MBS) valuation-related accretion changes, and $6.0 million in provisions for...

WESTLAKE VILLAGE, Calif. (AP) — WESTLAKE VILLAGE, Calif. (AP) — PennyMac Mortgage Investment Trust (PMT) on Tuesday reported first-quarter earnings of $24.6 million. The Westlake Village, California-based company said it had profit of 16 cents per share. The results did not meet Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 36 cents per share. The specialty finance company posted revenue of $82.1 million in the period. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PMT at https://www.zacks.com/ap/PMT

Mortgage banking company PennyMac Financial Services (NYSE:PFSI) fell short of the market’s revenue expectations in Q1 CY2026 as sales rose 2.9% year on year to $545 million. Its non-GAAP profit of $2.19 per share was 2.3% above analysts’ consensus estimates. Is now the time to buy PennyMac Financial Services? Find out in our full research report. Revenue: $545 million vs analyst estimates of $551.4 million (2.9% year-on-year growth, 1.2% miss) Adjusted EPS: $2.19 vs analyst estimates of $2.14 (2.3% beat) Market Capitalization: $4.67 billion “In the first quarter, PennyMac Financial generated an 8% annualized return on equity and an 11% annualized adjusted return on equity2,” said Chairman and CEO David Spector. Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE:PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States. Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. PennyMac Financial Services’s demand was weak over the last five years as its revenue fell at a 12.4% annual rate. This was below our standards and suggests it’s a low quality business. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. PennyMac Financial Services’s annualized revenue growth of 16.4% over the last two years is above its five-year trend, suggesting its demand recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, PennyMac Financial Services’s revenue grew by 2.9% year on year to $545 million, falling short of Wall Street’s estimates. Net interest income made up -1.5% of the company’s total revenue during the last five years, meaning PennyMac Financial Services is well diversified and has a variety of income streams driving its overall growth. Nevertheless, net interest income is critic...