Commercial real estate finance company Walker & Dunlop (NYSE:WD) will be reporting results this Thursday morning. Here’s what investors should know.
Walker & Dunlop missed analysts’ revenue expectations last quarter, reporting revenues of $340 million, flat year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ net interest income 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 grow 13.7% year on year, improving from the 4.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. WaFd Bank delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 4%, and Northwest Bancshares reported revenues up 12.1%, topping estimates by 0.8%. WaFd Bank traded up 8.4% following the results while Northwest Bancshares was also up 5%.
Read our full analysis of WaFd Bank’s results here and Northwest Bancshares’s results here.
There has been positive sentiment among investors in the thrifts & mortgage finance segment, with share prices up 4.6% on average over the last month. Walker & Dunlop is up 13.4% during the same time and is heading into earnings with an average analyst price target of $68 (compared to the current share price of $51.18).
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