Q3 2024 Walker & Dunlop Inc Earnings Call Transcript
Key Points
- Walker & Dunlop Inc (WD) reported a 36% increase in total transaction volume in Q3 2024, reaching $11.6 billion, indicating strong market activity.
- The company achieved a 33% year-over-year growth in earnings per share, reaching 85 cents per share.
- WD's GSE loan volumes saw a meaningful uptick, contributing to a 23% increase in MSR revenue year-over-year.
- The company experienced significant growth in HUD lending volumes, which grew over 200% to $272 million in Q3.
- WD's servicing portfolio remains robust, ending the quarter with $134 billion, generating stable recurring revenues with strong credit fundamentals.
- Despite the increase in transaction volume, total revenues only grew by 9%, indicating a potential issue with revenue mix or transaction fees.
- WD's affordable equity revenues were down 37% due to a decline in tax credit syndications and asset dispositions during the quarter.
- The company recognized a $3 million provision for credit losses, indicating some challenges within its credit risk portfolio.
- Fannie Mae requested WD to repurchase two additional loans totaling $26 million, both of which are defaulted loans.
- The company faces potential risks from interest rate volatility, which could impact transaction volumes and servicing portfolio duration.
Please stand by.
Good day and welcome to the Q3 2024 Walker and Dunlop earnings call. Today's conference is being recorded at this time. I would like to turn the conference over to Kelsey Duffy. Please go ahead.
Thank you, Ruth. Good morning, everyone. Thank you for joining Walker and Dunlop's third quarter, 2024 earnings call I have with me this morning, our Chairman and CEO Willy Walker and our CFO Greg Swarowsky.
This call is being webcast live on our website and a recording will be available later today. Both our earnings press release and website provide details on accessing the archive webcast. This morning, we posted our earnings release and presentation to the investor relations section of our website. Www dot Walker Dunlop dotcom. These slides serve as a reference point for some of what Willy and Gride will touch on during the call. Please also note that we will reference the non-GAAP financial metrics adjusted EBITA and adjusted core EPS during the course of this call.
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