Walker & Dunlop (WD) came out with quarterly earnings of $1.19 per share, missing the Zacks Consensus Estimate of $1.29 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.75%. A quarter ago, it was expected that this provider of commercial real estate financial services would post earnings of $1.16 per share when it actually produced earnings of $1.23, delivering a surprise of 6.03 ...

Loan Origination and Refinancing - 68% of refinancing volumes come from new loans, and 19% of total transaction volumes come from new customers for the nine months ended September 30, 2024[142] - The company is focused on significantly growing its small-balance multifamily lending platform, supported by acquisitions that enhance data analytics and technology development[153] - GSE lending volumes in Q3 2024 increased to $3.5 billion, up 33% from Q2 2024, driven by improved capital supply and increased multifamily property sales[188] - The Mortgage Bankers Association forecasts multifamily lending to rise to $339 billion in 2024, a 25% increase from $271 billion in 2023[189] - Fannie Mae and Freddie Mac's multifamily origination volumes for the year to date ended September 30, 2024 were $32.5 billion and $35.1 billion, respectively, with $72.4 billion in combined available lending capacity for Q4 2024[190] - Loan origination and debt brokerage fees increased by $14.4 million (9%) to $182.6 million, driven by higher debt financing volumes[204] - Loan origination and debt brokerage fees increased by $14.4 million (9%) to $182.62 million for the nine months ended September 30, 2024, compared to the same period in 2023[217] - Origination fees increased by $16,574 (30%) to $72,723 in 2024 from $56,149 in 2023[238] - Origination fees for the nine months ended September 30, 2024, increased by $12,585 (8%) to $180,264 from $167,679 in 2023[239] - Origination fees increased by 30% to $72.72 million for the three months ended September 30, 2024, compared to $56.15 million in 2023[255] Servicing and Risk-Sharing Obligations - The company retains servicing rights and asset management responsibilities on substantially all Agency loan products it originates and sells, generating cash revenues from servicing fees[159] - Under the Fannie Mae DUS program, the company is required to advance principal and interest payments for four months if a borrower ceases payments, with potential reimbursement from Fannie Mae[159] - The company is obligated to advance principal and interest payments under the Ginnie Mae program until the loan is brought current, fully paid, or assigned to HUD[159] - The company is not obligated to make advances on loans serviced under the Freddie Mac Optigo® program and its bank and life insurance company servicing agreements[159] - The company absorbs losses on the first 5% of the unpaid principal balance of a loan under full risk-sharing, with a maximum loss capped at 20% of the original unpaid principal balance, equating to a maximum loss per loan of $60 million for loans up to $300 million[160] - The weighted-average annual loss rate for risk-sharing obligations declined from 0.6 basis points to 0.3 basis points in Q1 2024 due to updated loss data[176] - The forecast-period loss rate for risk-sharing obligations remained relatively unchanged at 2.4 basis points as of December 31, 2023, and 2.3 basis points as of March 31, 2024[177] - Fannie Mae DUS risk-sharing obligations are structured with tiered loss absorption percentages, with the company absorbing 100% of the first 5% of UPB at loss settlement[309] - The allowance for risk-sharing obligations for the Company's $60.6 billion at-risk Fannie Mae servicing portfolio as of September 30, 2024 was $29.9 million, compared to $31.6 million as of December 31, 2023[313] - As of September 30, 2024, seven at-risk loans with an aggregate UPB of $59.6 million were in default, compared to no at-risk loans as of September 30, 2023[314] - The collateral-based reserve on defaulted loans was $6.5 million as of September 30, 2024, compared to zero as of September 30, 2023[314] - The company had a benefit for risk-sharing obligations of $0.2 million for the three months ended September 30, 2024, compared to a provision of $0.6 million for the same period in 2023[314] Financial Performance and Revenues - Total revenues for Q3 2024 increased by 9% to $292.3 million, driven by increases in loan origination and debt brokerage fees, servicing fees, and property sales broker fees[200] - Total revenues increased by $10.9 million (1%) to $791.0 million for the nine months ended September 30, 2024, compared to $780.1 million in the same period in 2023[204] - Servicing fees increased by $10.7 million (5%) to $242.7 million, primarily due to growth in the GSE servicing portfolio[204] - Placement fees and other interest income rose by $14.7 million (13%) to $124.0 million, driven by higher short-term interest rates[204] - Adjusted EBITDA increased by $21.4 million (10%) to $234.0 million for the nine months ended September 30, 2024, compared to $212.5 million in 2023[213] - Income tax expense decreased by $5.1 million (21%) to $19.6 million, driven by lower income from operations and a $1.1 million tax adjustment[204][209] - Adjusted EBITDA for the nine months ended September 30, 2024, increased by $21.4 million (10%) compared to the same period in 2023, reaching $233.97 million[217] - Servicing fees increased by $10.7 million (5%) to $242.68 million for the nine months ended September 30, 2024, compared to the same period in 2023[217] - Investment management fees decreased by $4.8 million (11%) to $40.09 million for the nine months ended September 30, 2024, compared to the same period in 2023[217] - Placement fees and other interest income increased by $14.7 million (13%) to $123.99 million for the nine months ended September 30, 2024, compared to the same period in 2023[217] - Net cash used in operating activities increased by $69.0 million (21%) to $401.46 million for the nine months ended September 30, 2024, compared to the same period in 2023[224] - Total revenues for the three months ended September 30, 2024, decreased by $3.256 million (2%) compared to the same period in 2023[261] - Servicing fees increased by $3.022 million (4%) for the three months ended September 30, 2024, driven by a $3.2 billion increase in Fannie Mae and a $1.4 billion increase in Freddie Mac loans serviced[263][264] - Investment management fees decreased by $1.618 million (12%) for the three months ended September 30, 2024, primarily due to a $3.5 million decline in LIHTC operations[261][264] - Placement fees and other interest income increased by $824,000 (2%) for the three months ended September 30, 2024, driven by higher short-term interest rates and a 4% increase in escrow deposit balances[261][265] - Other revenues decreased by $6.424 million (41%) for the three months ended September 30, 2024, due to a $3.0 million decline in equity method investments and a 78% drop in gross equity raised[261][266] - Adjusted EBITDA for the three months ended September 30, 2024 was $117.455 million, a decrease of 6% compared to $124.849 million in the same period in 2023[277] - Adjusted EBITDA for the nine months ended September 30, 2024 was $361.614 million, an increase of 4% compared to $346.283 million in the same period in 2023[278] - Servicing fees increased by 4% to $82.222 million for the three months ended September 30, 2024, driven by growth in the average servicing portfolio[277][280] - Placement fees and other interest income increased by 12% to $113.072 million for the nine months ended September 30, 2024, largely due to higher placement fee rates[278][281] - Net income for the nine months ended September 30, 2024 was $121.197 million, a decrease of 8% compared to $132.243 million in the same period in 2023[275] - Adjusted EBITDA for the three months ended September 30, 2024 was $(33.9 million), a 3% improvement compared to $(35.1 million) in the same period of 2023[290] - Adjusted EBITDA for the nine months ended September 30, 2024 was $(95.2 million), a 7% decrease compared to $(89.0 million) in the same period of 2023[291] - Other interest income increased by 26% to $10.9 million for the nine months ended September 30, 2024, driven by higher interest rates on cash deposits[292] Market and Economic Conditions - The national unemployment rate was 4.1% in September 2024, with multifamily vacancies stabilizing at 5.6%, down from 5.8% in December 2023[192] - The effective Federal Funds Rate (EFFR) was 483 basis points as of September 30, 2024, compared to 533 basis points as of September 30, 2023[319] - A 100-basis point increase in EFFR would result in a $30.8 million increase in annual placement fee revenue as of September 30, 2024, compared to $28.2 million as of September 30, 2023[320] - The base SOFR was 496 basis points as of September 30, 2024, compared to 531 basis points as of September 30, 2023[320] - A 100-basis point increase in SOFR would result in a $10.4 million decrease in annual net warehouse interest income as of September 30, 2024, compared to a $7.8 million decrease as of September 30, 2023[321] - A 100-basis point increase in SOFR would result in a $7.8 million decrease in annual income from operations as of September 30, 2024, compared to a $7.9 million decrease as of September 30, 2023[322] - A 100-basis point increase in the weighted average discount rate would decrease the fair value of the company's MSRs by approximately $43.1 million as of September 30, 2024, compared to $43.2 million as of September 30, 2023[323] Acquisitions and Investments - The company purchased the remaining 25% interest in Zelman & Associates during the fourth quarter of 2024, enhancing its housing market research and investment banking capabilities[156] - WDIP, a subsidiary, manages $2.0 billion in regulatory assets under management (AUM) across six investment vehicles and separate accounts for life insurance companies[163] - The Interim Program JV, a joint venture with Blackstone Mortgage Trust, Inc., offers short-term senior secured debt financing products, with the company holding a 15% ownership interest[164] - WDIP launched a credit fund in Q4 2023 focused on transitional lending, with a 5% co-investment obligation and a percentage of returns above the fund return hurdle rate[166] - WDAE, a subsidiary, is one of the largest tax credit syndicators and affordable housing developers in the U.S., managing LIHTC funds and earning syndication fees[167] - The company's first credit fund raised $150 million, enabling the deployment of nearly $500 million of leveraged capital to the transitional multifamily lending market in 2024[194] Operational and Strategic Developments - The company has increased the number of property sales brokers and expanded its geographical reach, now covering many major markets in the United States[155] - Apprise, the company's appraisal platform, has increased its market share in the appraisal market through hiring and recruiting, supporting long-term growth[157] - Transaction activity in Q3 2024 surged to $11.6 billion, the highest quarterly total in nearly two years, with property sales volume reaching $3.6 billion, a 44% increase compared to Q3 2023[188] - Total transaction volume for Q3 2024 was $11.6 billion, a 37% increase quarter on quarter, with debt financing volume at $8.0 billion and property sales volume at $3.6 billion[197] - Total Debt Financing Volume increased by $1,980,781 (11%) to $19,761,808 in 2024 compared to $17,781,027 in 2023[237] - Property sales broker fees increased by $2,460 (15%) to $19,322 in 2024 from $16,862 in 2023[238] - Total Managed Portfolio grew by 4% to $152.29 billion as of September 30, 2024, from $146.29 billion in 2023[258] - Custodial escrow deposit balance increased to $3.1 billion as of September 30, 2024, from $2.8 billion in 2023[258] - The company paid a cash dividend of $0.65 per share in Q3 2024, a 3% increase compared to Q3 2023, and declared another $0.65 per share dividend for Q4 2024[295] - As of September 30, 2024, the company had a net worth of $936.7 million, significantly above the Fannie Mae requirement of $318.6 million[294] - The company held $156.9 million in Agency MBS as collateral for Fannie Mae DUS risk-sharing obligations as of September 30, 2024[298] - Total loans serviced for others increased to $134.0 billion as of September 30, 2024, up from $128.9 billion in the same period of 2023[305] - Defaulted loans in the Fannie Mae at-risk portfolio represented 0.10% of the portfolio as of September 30, 2024[305] - The company has $75.0 million remaining capacity under its stock repurchase program approved in February 2024[296] Expenses and Provisions - Total expenses increased by $30.4 million (4%) to $711.7 million, primarily due to higher provision for credit losses and other operating expenses[204] - Provision for credit losses increased by $17.4 million (157%) to $6.3 million, mainly due to losses related to Freddie Mac forbearance agreements[204][205] - Goodwill impairment decreased by $14.0 million (100%) as there was no triggering event in 2024 compared to 2023[204][208] - Personnel expenses increased by $1.6 million (0.4%) to $390.1 million, primarily due to higher commission costs[204] - Personnel expenses increased by $7,014 (7%) to $104,987 in 2024 from $97,973 in 2023[238] - Goodwill impairment decreased by $14,000 (100%) to $0 in 2024 from $14,000 in 2023[238] - Personnel expenses increased by $3.812 million (22%) for the three months ended September 30, 2024, due to higher salaries, benefits, and commission costs[261][268] - Provision for credit losses increased by $2.429 million (577%) for the three months ended September 30, 2024, primarily due to a $3.0 million increase in the fair value of forbearance agreements[261][269] - Total expenses increased by $8.721 million (10%) for the three months ended September 30, 2024, driven by higher personnel, credit loss provisions, and other operating expenses[261] - Personnel expenses in the corporate segment decreased by 8% to $19.600 million for the three months ended September 30, 2024, primarily due to a reduction in subjective bonuses[281][285] - Other operating expenses in the corporate segment increased by 16% to $60.093 million for the nine months ended September 30, 2024, driven by higher travel, entertainment, and software costs[283][287] Contingent Consideration and Goodwill - The company recorded a $62.5 million reduction to the fair value of contingent consideration liabilities in 2023 based on revised management forecasts and valuation inputs[182] - The aggregate fair value of contingent consideration liabilities as of September 30, 2024 was $79.4 million, with maximum remaining undiscounted earnout payments of $258.5 million[183] - Goodwill as of September 30, 2024 was $901.7 million, with a $62.0 million impairment in 2023 due to challenging macroeconomic conditions[184]

The upcoming report from Walker & Dunlop (WD) is expected to reveal quarterly earnings of $1.29 per share, indicating an increase of 16.2% compared to the year-ago period. Analysts forecast revenues of $298.58 million, representing an increase of 11.1% year over year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Prior to a company's ...

Core Insights - Walker & Dunlop has consistently beaten earnings estimates, with an average surprise of 24.70% over the last two quarters [1] - The company reported earnings of $1.23 per share for the most recent quarter, exceeding the expected $1.16 per share, resulting in a surprise of 6.03% [1] - For the previous quarter, Walker & Dunlop's actual earnings of $1.19 per share surpassed the consensus estimate of $0.83 per share, leading to a surprise of 43.37% [1] Earnings Estimates and Predictions - Recent estimates for Walker & Dunlop have been increasing, indicating positive sentiment among analysts [2] - The Zacks Earnings ESP for Walker & Dunlop is currently +5.84%, suggesting bullish expectations for near-term earnings [3] - The combination of a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy) indicates a high likelihood of another earnings beat in the upcoming report [3] Upcoming Earnings Report - Walker & Dunlop's next earnings report is anticipated to be released on November 7, 2024 [3]

Walker & Dunlop, Inc. (NYSE:WD) Q2 2024 Earnings Conference Call August 8, 2024 8:30 AM ET Company Participants Kelsey Duffey – Senior Vice President-Investor Relations Willy Walker – Chairman and Chief Executive Officer Greg Florkowski – Chief Financial Officer Conference Call Participants Jade Rahmani – KBW Steve DeLaney – Citizens JMP Derek Sommers – Jefferies Brian Violino – Wedbush Securities Operator Good day, and welcome to the Q2 2024 Walker & Dunlop, Inc. Earnings Call. Today’s conference is being ...

For the quarter ended June 2024, Walker & Dunlop (WD) reported revenue of $270.68 million, down 0.7% over the same period last year. EPS came in at $1.23, compared to $0.98 in the year-ago quarter. The reported revenue represents a surprise of -1.47% over the Zacks Consensus Estimate of $274.7 million. With the consensus EPS estimate being $1.16, the EPS surprise was +6.03%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Walker & Dunlop (WD) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.16 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.03%. A quarter ago, it was expected that this provider of commercial real estate financial services would post earnings of $0.83 per share when it actually produced earnings of $1.19, delivering a surprise of 43.3 ...

Financial Performance - Total revenues decreased by 1% year-over-year to $270.7 million in Q2 2024[1] - Net income for Q2 2024 was $22.7 million, down 18% from Q2 2023, with diluted earnings per share at $0.67[1] - Adjusted core EPS rose by 26% year-over-year to $1.23 in Q2 2024[1] - Net income for Walker & Dunlop in Q2 2024 was $40,432,000, reflecting an increase of $4,700,000 or 13% compared to Q2 2023[12] - Walker & Dunlop net income for Q2 2024 was $(28,808,000), a 19% decrease from $(24,204,000) in Q2 2023, reflecting a variance of $(4,604,000)[14] - Walker & Dunlop's net income for YTD Q2 2024 was $83,715,000, down 4% from $86,816,000 in YTD Q2 2023[22] - Walker & Dunlop reported a net income of $22.663 million for Q2 2024, a significant increase from $11.866 million in Q1 2024[39] Revenue Streams - Total transaction volume for Q2 2024 was $8.4 billion, flat compared to Q2 2023[1] - The servicing portfolio grew to $132.8 billion as of June 30, 2024, up 5% from the previous year[1] - Brokered transaction volume increased by 16% year-over-year, driven by higher demand for capital[2] - The total managed portfolio reached $150.3 billion, reflecting a 5% increase from the previous year[3] - The Servicing & Asset Management segment reported total revenues of $148,232,000 in Q2 2024, an increase of $5,392,000 or 4% from Q2 2023[12] - Total revenues for YTD Q2 2024 increased to $289,467,000, up 5% from $276,036,000 in YTD Q2 2023, representing a variance of $13,431,000[22] Expenses and Costs - Total expenses for Q2 2024 increased to $45,060,000, a 19% increase from $37,862,000 in Q2 2023, reflecting a variance of $7,198,000[14] - Personnel expenses rose to $38,132,000, a 4% increase from $36,530,000 in the previous year[22] - Total expenses for YTD Q2 2024 were $181,824,000, an 11% increase from $164,296,000 in YTD Q2 2023, resulting in a variance of $17,528,000[22] - Interest expense on corporate debt increased by 5% year-over-year, primarily due to rising interest rates[9] - Interest expense on corporate debt increased by $3.2 million, or 10%, year-over-year due to rising interest rates[16] Portfolio and Loan Performance - The at-risk servicing portfolio increased to $60,122,274 in Q2 2024 from $56,430,098 in Q2 2023, reflecting a $3,692,176 increase or approximately 7%[8] - Defaulted loans in the at-risk portfolio rose to five loans with an aggregate unpaid principal balance of $48.6 million in Q2 2024, compared to two loans with a UPB of $37.0 million in Q2 2023[8] - Defaulted loans as a percentage of the at-risk portfolio decreased to 0.08% from 0.11% in Q1 2024, indicating improved loan performance[33] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.65 per share for Q3 2024[1] - Cash dividends paid per common share were $0.65, consistent with Q1 2024[31] Market and Future Outlook - Walker & Dunlop's future outlook remains positive, with expectations for continued growth in adjusted core net income and EPS[39] - The company is focusing on market expansion and new product development to drive future revenue growth[39] Balance Sheet and Assets - Total assets increased to $4,175,398 thousand as of June 30, 2024, up from $3,825,912 thousand on March 31, 2024, representing a growth of 9.1%[30] - Total liabilities increased to $2,441,604 thousand, up from $2,090,004 thousand, reflecting a rise of 16.8%[30] - The company reported a total stockholders' equity of $1,696,900 thousand, down from $1,715,336 thousand, a decrease of 1.5%[30] Adjusted Metrics - Adjusted EBITDA increased by 15% year-over-year to $80.9 million, reflecting strong recurring revenue streams[1] - Adjusted EBITDA for YTD Q2 2024 was $244,159,000, reflecting a 10% increase from $221,434,000 in YTD Q2 2023[22] - Adjusted Core Net Income for Q2 2024 was $41.702 million, compared to $40.352 million in Q1 2024, reflecting a growth of 3.34%[39]

Analysts on Wall Street project that Walker & Dunlop (WD) will announce quarterly earnings of $1.16 per share in its forthcoming report, representing an increase of 18.4% year over year. Revenues are projected to reach $274.7 million, increasing 0.8% from the same quarter last year. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Before a company reve ...

The market expects Walker & Dunlop (WD) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be release ...