NYSE$WD

Walker & Dunlop Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Walker & Dunlop reported a decrease in total revenues and net income, but an increase in adjusted EBITDA driven by growth in cash revenues from services businesses.

Walker & Dunlop reported a decrease in total revenues of 9% year-over-year, with net income and diluted earnings per share also declining. However, adjusted EBITDA increased by 4% driven by growth in cash revenues from the company's services businesses. The company's servicing portfolio continued to expand, reaching $120.8 billion.

  • Total transaction volume was $16.9 billion, down 8% from Q3 2021.
  • Total revenues were $315.6 million, a decrease of 9% year-over-year.
  • Net income was $46.8 million, down 35% from Q3 2021.
  • Servicing portfolio reached $120.8 billion, up 6% from September 30, 2021.

Headline financials

Total Revenue

$316M

Previous: $346M-8.9%
EPS (adj)

$1.40

Previous: $2.21-36.7%
Debt Financing Volume

$11.9B

Previous: $13.3B-10.1%
Property Sales Volume

$4.99B

Previous: $5.23B-4.5%
Total Servicing Portfolio

$121B

Previous: $114B+6.0%
Operating Margin

17.0%

Previous: 27.0%-37.0%
Free Cash Flow

$46.8M

Previous: $71.7M-34.7%
Net Income

$46.8M

Previous: $71.7M-34.7%
Operating Income

$19M

Previous: $68.6M-72.3%
Gross Profit

$314M

Previous: $345M-8.9%
Cash & Equivalents

$152M

Previous: $318M-52.2%
Total Assets

$6B

Previous: $5.12B+17.3%

Revenue & EPS history

Walker & Dunlop · Revenue · Quarterly

$316M

Q3 2022-8.9%vs Q3 2021
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Walker & Dunlop · $316M total across 3 segments · Q3 2022

  • Capital Markets
    $183M
  • Servicing & Asset Management
    $134M
  • Corporate
    -$2.25M

Forward guidance

The current economic outlook is uncertain. Yet we are confident in achieving our five-year, Drive to '25 business plan.

Tailwinds

  • Our people, brand and technology lead the market
  • Recent investments in Alliant
  • Recent investments in Zelman
  • Recent investments in small balance lending
  • Recent investments in appraisals add fast growing, technologically-enabled businesses to W&D.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.7%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.8%

Avg return

30 days after

57%

36 / 63 earnings

Positive

+15.8%

Q4 2016

Best reaction

-20.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.0%+3.8%-3.6%
Q4 2025-20.0%-17.3%-26.9%
Q3 2025-11.5%-15.2%-20.9%
Q1 2025-3.3%-6.6%-10.5%
Q4 2024-5.3%-6.2%-4.2%
Q3 2024-0.9%-2.4%-3.6%
Q2 2024+3.2%+3.2%+4.8%
Q1 2024+2.7%+4.1%+3.5%
Q4 2023+2.9%+0.3%-4.9%
Q3 2023-1.0%+11.4%+29.4%
Q2 2023-2.2%-4.2%-5.4%
Q1 2023+3.1%-2.5%+15.2%
Q4 2022-4.3%-4.6%-21.6%
Q3 2022-1.1%-1.3%-4.3%
Q2 2022-6.2%-4.4%-13.6%
Q1 2022-13.4%-16.5%-11.4%
Q4 2021+6.5%+8.7%+3.7%
Q3 2021+8.5%+10.3%+9.4%
Q2 2021+1.1%-0.1%+8.5%
Q1 2021-7.7%-12.3%-10.9%
Q4 2020+10.7%+16.0%+16.7%
Q3 2020+6.9%+15.8%+37.9%
Q2 2020+9.1%+14.4%+7.8%
Q1 2020+8.3%+3.5%+37.5%
Q4 2019+11.2%+13.9%-3.9%
Q3 2019+0.5%+3.2%+3.9%
Q2 2019+2.4%+2.8%-9.2%
Q1 2019+0.9%+0.6%-8.5%
Q4 2018+5.5%+6.9%+9.0%
Q3 2018-6.5%-7.7%-3.5%
Q2 2018-6.9%-10.2%-8.0%
Q1 2018-6.0%-5.0%-2.3%
Q4 2017+5.4%-3.0%+5.4%
Q3 2017-2.1%-14.3%-10.1%
Q2 2017-1.1%-2.3%-4.7%
Q1 2017+8.2%+8.8%+7.8%
Q4 2016+15.8%+18.8%+27.4%
Q3 2016+11.3%+16.2%+21.4%
Q2 2016+14.1%+16.6%+13.1%
Q1 2016+6.9%
Q4 2015-9.2%
Q3 2015+4.9%
Q2 2015-4.5%
Q1 2015+12.0%
Q4 2014-8.6%
Q3 2014+0.1%
Q2 2014+2.0%
Q1 2014-3.5%
Q4 2013+14.0%
Q3 2013-3.2%
Q2 2013-18.7%
Q1 2013-0.8%
Q4 2012-4.5%
Q3 2012+5.8%
Q2 2012-3.7%
Q1 2011-1.7%
Q1 2012+1.2%
Q4 2009+1.3%
Q4 2011+1.3%
Q3 2010+2.7%
Q3 2011+2.7%
Q2 2011+3.1%
Q4 2010+3.1%
Q2 2010
Q1 2010

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