Walker & Dunlop (WD) Misses Q1 EPS by 15c, Revenues Miss

Walker & Dunlop (NYSE: WD) reported Q1 EPS of $1.79, $0.15 worse than the analyst estimate of $1.94. Revenue for the quarter came in at $224.3 million versus the consensus estimate of $246.03 million.

FIRST QUARTER 2021 HIGHLIGHTS

• Total revenues of $224.3 million
• Total transaction volume of $9.0 billion
• Net income of $58.1 million and diluted earnings per share of $1.79
• Benefit for credit losses of $11.3 million resulted in a $0.25 benefit to diluted earnings per share
• Servicing portfolio of $109.9 billion at March 31, 2021
• Adjusted EBITDA1 of $60.7 million
• Declared quarterly dividend of $0.50 per share for the second quarter

Willy Walker, Chairman and CEO, commented, "Walker & Dunlop is today the largest provider of capital to the multifamily industry and the fourth largest lender on commercial real estate in the United States thanks to our investments in people, brand, and technology. $9 billion of total transaction volume and $224 million in revenues during Q1 2021 resulted in diluted earnings per share of $1.79, which includes a $0.25 benefit from a reduction in our allowance for credit losses that we do not consider to be core or recurring profit. W&D's proprietary, actionable technology platform continued to expand our client base during the quarter, with 79% of the loans we refinanced during the quarter new loans to Walker & Dunlop, and 27% of our total transaction volume from new clients to Walker & Dunlop. With the economy reopening, we are seeing a dramatic upswing in activity across all our lending and brokerage products."

Mr. Walker continued, "We had a great start to the year and see a lot of opportunity ahead of us. There is over $324 billion of institutional equity capital looking to be deployed into the U.S. commercial real estate industry today, and with banks, life companies, and specialty finance firms well capitalized and looking to invest, transaction volumes for 2021 and into 2022 will be robust. And after a slow first quarter, Fannie Mae and Freddie Mac have $105 billion of lending capacity to deploy over the remainder of 2021. Walker & Dunlop is the GSEs' second largest multifamily lending partner, and we will see very healthy volumes with both Fannie and Freddie for the remainder of the year."

For earnings history and earnings-related data on Walker & Dunlop (WD) click here.

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