NYSE$WD

Walker & Dunlop Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Walker & Dunlop grew market share in a challenging quarter, with servicing and asset management businesses shining.

Walker & Dunlop reported a 31% decrease in total revenues, totaling $282.9 million for Q4 2022. Net income was $41.5 million, with diluted earnings per share at $1.24, a decrease of 48% and 49% respectively. Despite macroeconomic headwinds, the company's servicing portfolio reached $123.1 billion, up 6% year over year.

  • Total transaction volume decreased to $11.2 billion, a 59% decrease from Q4 2021.
  • Total revenues were $282.9 million, down 31% from Q4 2021.
  • Net income reached $41.5 million, with diluted earnings per share of $1.24, down 48% and 49%, respectively, from Q4 2021.
  • Servicing portfolio increased to $123.1 billion, a 6% increase from the previous year.

Headline financials

Total Revenue

$283M

Previous: $407M-30.5%
EPS (adj)

$1.24

Previous: $2.42-48.8%
Debt Financing Volume

$7.89B

Previous: $17.8B-55.7%
Property Sales Volume

$3.32B

Previous: $9.29B-64.3%
Total Servicing Portfolio

$123B

Previous: $116B+6.4%
Operating Margin

17.0%

Previous: 27.0%-37.0%
Net Income

$41.5M

Previous: $79.9M-48.1%
Operating Income

$47.2M

Previous: $110M-57.1%
Gross Profit

$133M

Previous: $209M-36.3%
Cash & Equivalents

$226M

Previous: $306M-26.1%
Total Assets

$4.05B

Previous: $5.21B-22.3%
Stock-Based Comp

$34M

Previous: $36.6M-7.1%

Revenue & EPS history

Walker & Dunlop · Revenue · Quarterly

$283M

Q4 2022-30.5%vs Q4 2021
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 is focused on achieving $2 billion in revenue and $13 of diluted earnings per share in 2025. The business model is unique in generating both transaction volume growth along with recurring revenues from servicing and asset management fees. The company's focus on the multifamily industry has been valuable, and the team, brand, and technology are positioned to deliver great growth over the coming years.

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 Q4 2022

Historical avgQ4 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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