The chart below shows how WD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WD sees a +4.22% change in stock price 10 days leading up to the earnings, and a +4.31% change 10 days following the report. On the earnings day itself, the stock moves by -2.44%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Transaction Volume Increase: We closed $11.6 billion of total transaction volume in Q3, up 36% from Q3 2023 and up 37% sequentially from Q2 2024.
Earnings Per Share Growth: Due to increased deal flow and revenues, we grew diluted earnings per share 33% year-over-year to $0.85 per share.
Adjusted EBITDA and EPS Growth: Adjusted EBITDA and adjusted core EPS, which strip out non-cash revenues and expenses were both up 7%.
Loan Volume Increase: We closed $3.5 billion of loans with the GSEs in Q3, a welcome pickup in volume.
HUD Lending Volume Surge: Our HUD lending volumes grew over 200% to $272 million in Q3, while W&D affordable equity revenues were down 37% due to a decline in tax credit syndications and asset dispositions during the quarter.
Negative
Earnings Per Share Decline: Diluted earnings per share for the first three quarters of the year is down 17% to $1.87 per share due to low transaction activity in the first half of the year.
Operating Margin and ROE Decline: Year-to-date operating margin is 10% and return on equity is 5% compared to 13% and 6%, respectively, last year.
SAM Segment Revenue Decline: Revenue from our SAM segment declined 2% this quarter despite a 3% increase in servicing fees and related revenues.
Credit Loss Provision Increase: We recognized a $3 million provision for credit losses during the quarter, bringing our total reserve for these assets to $8 million.
Defaulted Loan Loss Estimation: We are currently estimating losses of $7 million on these defaulted loans, which compares to our overall risk sharing allowance of $30 million.
Walker & Dunlop, Inc. (WD) Q3 2024 Earnings Call Transcript
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