PennyMac Mortgage -3% after decline in earnings

• "PennyMac Mortgage (PMT -2.9%) unfortunately combines both the cyclical headwinds of a slowing correspondent production operation with uncertain results in investment activities," says Nomura's Brock Vandervliet, who rates the stock at Neutral.
• Net income of $31.2M was down 10% from Q4, but included a $17.3M gain from interest rate hedges. Backing that out, Vandervliet figures Q4 pretax income was only about one-third of what he was expecting.
• Source: Bloomberg