Overview

* PennyMac Mortgage Investment Trust ( PMT ) reports Q2 net loss of $2.9 mln, missing analyst expectations

* Company's net investment income at $70.2 mln, impacted by fair value declines

* Correspondent loan production volumes up 11% from prior quarter

Outlook

* Company does not provide specific forward-looking financial guidance for 2025

* Company emphasizes strategic focus on diversifying credit-sensitive investments

* Company confident in management's ability to navigate market uncertainty

Result Drivers

* FAIR VALUE DECLINES - Net investment income impacted by fair value declines due to interest rate volatility

* NON-RECURRING TAX EXPENSE - $14 mln tax expense from repricing of deferred tax balances due to state apportionment changes

* CORRESPONDENT PRODUCTION - 11% increase in correspondent loan production volumes contributed to new mortgage servicing rights

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS -$0.04

Q2 Net Miss -$2.90 $30.50

Income mln mln (6

Analysts

)

Q2 $0.4

Dividend

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the specialized reits peer group is "buy."

* Wall Street's median 12-month price target for PennyMac Mortgage Investment Trust ( PMT ) is $13.50, about 7.6% above its July 21 closing price of $12.48

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)