•
Mar 31, 2024

Walker & Dunlop Q1 2024 Earnings Report

Walker & Dunlop's financial performance was impacted by market uncertainty and rising rates, which slowed transaction volume, while adjusted core EPS and adjusted EBITDA increased, showcasing the durability of the business model.

Key Takeaways

Walker & Dunlop reported a mixed Q1 2024 with a 4% decrease in total revenues to $228.1 million and a 55% decrease in net income to $11.9 million, or $0.35 per diluted share. However, adjusted EBITDA increased by 9% to $74.1 million, and adjusted core EPS rose by 2% to $1.19, demonstrating the strength of recurring revenue streams despite market headwinds.

Total transaction volume was $6.4 billion, a 5% decrease compared to Q1 2023.

Total revenues amounted to $228.1 million, a 4% decrease year-over-year.

Net income was reported at $11.9 million, with diluted earnings per share at $0.35, reflecting decreases of 55% and 56%, respectively, from Q1 2023.

The servicing portfolio reached $132.0 billion as of March 31, 2024, marking a 6% increase from March 31, 2023.

Total Revenue
$223M
Previous year: $239M
-6.6%
EPS
$1.19
Previous year: $0.79
+50.6%
Total Transaction Volume
$6.4B
Previous year: $6.72B
-4.8%
Servicing Portfolio
$132B
Previous year: $125B
+6.0%
Debt Financing Volume
$5.23B
Gross Profit
$158M
Previous year: $105M
+51.0%
Cash and Equivalents
$428M
Previous year: $188M
+127.3%
Free Cash Flow
$35.2M
Total Assets
$3.83B
Previous year: $4.49B
-14.8%

Walker & Dunlop

Walker & Dunlop

Forward Guidance

Walker & Dunlop believes its full-year 2024 financial guidance is achievable given the volume of loan refinancings and equity capital looking to be deployed between now and year-end.

Positive Outlook

  • Commercial real estate investors are adapting to 'higher for longer' interest rates.
  • Investors are actively refinancing properties.
  • Investors are buying and selling properties.
  • Investors are raising new capital.
  • Company's full-year 2024 financial guidance is achievable given loan refinancings and equity capital deployment.

Challenges Ahead

  • Market uncertainty.
  • Rising interest rates.
  • Higher rates are headwinds.
  • Uncertain Fed policy are headwinds.
  • Team must provide clients with solutions in challenging markets.