NYSE$WD

Walker & Dunlop Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Walker & Dunlop's financial performance improved, driven by increased transaction volume and strategic investments.

Walker & Dunlop reported a strong third quarter in 2024, with a 36% increase in total transaction volume driving a 33% increase in diluted earnings per share. The company's key financial results improved, reflecting the ongoing recovery and strong fundamentals in the commercial real estate market.

  • Total transaction volume increased by 36% to $11.6 billion compared to Q3 2023.
  • Total revenues increased by 9% to $292.3 million compared to Q3 2023.
  • Net income increased by 34% to $28.8 million, and diluted earnings per share increased by 33% to $0.85 compared to Q3 2023.
  • The servicing portfolio reached $134.1 billion as of September 30, 2024, a 4% increase from September 30, 2023.

Headline financials

Total Revenue

$292M

Previous: $269M+8.8%
EPS

$0.85

Previous: $1.11-23.4%
Total Transaction Volume

$11.6B

No prior period
Debt Financing Volume

$8.01B

Previous: $6.05B+32.5%
Property Sales Volume

$3.6B

Previous: $2.51B+43.6%
Total Servicing Portfolio

$134B

Previous: $129B+4.0%
Operating Margin

13.0%

Previous: 10.0%+30.0%
Adjusted EBITDA

$78.9M

No prior period
Return on Equity

7.0%

No prior period
Custodial Escrow Deposits

$3.1B

No prior period
WA Servicing Fee Rate

24.1

No prior period
WA Remaining Term

7.7

No prior period
At-Risk Servicing Portfolio

$61.2B

No prior period
Max Exposure At-Risk

$12.5B

No prior period
Defaulted Loans

$59.6M

No prior period
Allowance % of At-Risk

0.1%

No prior period
Allowance % of Max Exp

0.2%

No prior period
Origination Fee Rate

0.9%

No prior period
Agency MSR Rate

1.1%

No prior period
Personnel Expense %

50.0%

No prior period
Other Operating Exp %

11.0%

No prior period
Capital Expenditures

-$1.97M

Previous: -$4.38M+55.0%
Free Cash Flow

$28.8M

Previous: $21.5M+34.2%
Net Income

$28.8M

Previous: $21.5M+34.2%
Operating Income

$2.54M

Previous: -$871K+391.3%
Gross Profit

$289M

Previous: $268M+7.9%

Revenue & EPS history

Walker & Dunlop · Revenue · Quarterly

$292M

Q3 2024+8.8%vs Q3 2023
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Walker & Dunlop · $273M total across 3 segments · Q2 2023

  • Servicing & Asset Management
    $143M+7.8%
  • Capital Markets
    $126M-39.4%
  • Corporate
    $3.79M+1278.2%

Forward guidance

Walker & Dunlop believes that it is at the beginning of the next commercial real estate cycle where profits will be harvested, loans will be refinanced, and capital will be deployed, all generating demand for Walker & Dunlop’s capital and services.

Tailwinds

  • Commercial real estate market continues to improve.
  • Strong fundamentals are attracting capital to the market.
  • Acquisition and financing activity is increasing.
  • Servicing and asset management business will continue to generate strong recurring cash revenues.
  • Continued investments in people, brand, and technology position the company well for future growth.

Headwinds

  • Rate movements have been headwinds.
  • Presidential election have been headwinds.
  • Closing of one of LIHTC funds was delayed in the third quarter of 2024.
  • Decline in syndication and other revenues related to a decline in gross equity raised year over year.
  • Increase in other operating expenses was primarily related to increases in expenses associated with multi-year software and data contracts.

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 2024

Historical avgQ3 2024

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro