Pennymac posts wholesale gains among larger profits

Pennymac enjoyed a more productive second quarter, although it suffered a financial hit from hedging results over early spring rate volatility. 

The Southern California-based mortgage giant reported $136.5 million in net income for the second quarter, missing a Standard & Poor’s Capital IQ consensus estimate of $152 million. The net income figure however was up 79% from the end of March, and 39% larger than the same time a year ago. 

The company’s diluted earnings per share was $2.54, also missing an S&P estimate but improving on EPS results of $1.42 and $1.85 in the quarter and year ago periods. 

Tuesday’s earnings showed mostly positive trends for the firm, which claims it’s the industry’s second-largest producer and sixth-largest servicer. It posted a $93 million negative charge…