Commercial real estate finance company Walker & Dunlop (NYSE: WD) will be announcing earnings results this Thursday before market hours. Here’s what you need to know.
Walker & Dunlop missed analysts’ revenue expectations last quarter, reporting revenues of $306.7 million, down 3.9% year on year. It was a softer quarter for the company, with a significant miss of analysts’ net interest income and tangible book value per share estimates.
Is Walker & Dunlop a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Walker & Dunlop’s revenue to decline 1.3% year on year, a reversal from the 15.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Walker & Dunlop has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Walker & Dunlop’s peers in the thrifts & mortgage finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Ladder Capital delivered year-on-year revenue growth of 107%, beating analysts’ expectations by 53.9%, and Rocket Companies reported revenues up 37.4%, falling short of estimates by 0.8%. Ladder Capital’s stock price was unchanged after the resultswhile Rocket Companies was up 7.2%.
Read our full analysis of Ladder Capital’s results here and Rocket Companies’s results here.
There has been positive sentiment among investors in the thrifts & mortgage finance segment, with share prices up 2.5% on average over the last month. Walker & Dunlop is up 6.5% during the same time and is heading into earnings with an average analyst price target of $48.33 (compared to the current share price of $35.21).
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