Mortgage banking company PennyMac Financial Services (NYSE: PFSI) will be reporting earnings this Tuesday after the bell. Here’s what to expect.

PennyMac Financial Services missed analysts’ revenue expectations by 19.8% last quarter, reporting revenues of $444.7 million, down 7.1% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates.

Is PennyMac Financial Services a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting PennyMac Financial Services’s revenue to be flat year on year at $575.7 million, slowing from the 35.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.98 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PennyMac Financial Services has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.

Looking at PennyMac Financial Services’s peers in the banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. WaFd Bank’s revenues decreased 1.2% year on year, missing analysts’ expectations by 3%, and First Horizon reported revenues up 7.5%, topping estimates by 7.7%. WaFd Bank’s stock price was unchanged after the resultswhile First Horizon was down 13.3%.

Read our full analysis of WaFd Bank’s results here and First Horizon’s results here.

Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.9% on average over the last month. PennyMac Financial Services is down 1.5% during the same time and is heading into earnings with an average analyst price target of $131.57 (compared to the current share price of $120.01).

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