PennyMac Mortgage reports Q3 EPS 55c, consensus 38c

Reports Q3 revenue $99.23M, consensus $97.91M. “In the third quarter PMT produced outstanding results and growth in book value per share with a 14 percent annualized return on common equity,” said Chairman and CEO David Spector. “These results were primarily driven by strong levels of income excluding market-driven value changes combined with strong interest rate risk hedging results. As part of our active capital management strategy to optimize returns, this quarter we sold $195 million of opportunistic investments in GSE-issued CRT, realizing significant gains. The sale of these investments frees up capital for PMT to invest in newly created assets with higher projected returns from our ongoing private label securitization efforts. In the third quarter we successfully completed four non-Agency securitizations totaling $1.5 billion in UPB and retained $140 million of newly created securities.”