Walker & Dunlop Posts Higher Q1 Profit, Shares Rise

Shares of

jumped over 2 percent in pre-market trading after the company reported a strong rise in its earnings for the first quarter. The Bethesda, Maryland-based company posted quarterly net income of $21.3 million, or $0.66 per share, compared to $7.1 million, or $0.21 per share, in the year-ago period. Its revenue rose 73 percent year-over-year to $112.1 million. However, analysts were expecting earnings of $0.34 per share on revenue of $90.4 million. Mortgage banking gains surged 110 percent to $72.7 million, while servicing fees rose 15 percent to $26.8 million. Net warehouse interest income jumped 95 percent to $4.4 million, while other revenue climbed 106 percent to $7.4 million in the quarter. Adjusted EBITDA for the first quarter climbed 79 percent to $35.4 million from $19.8 million. Total Expenses increased to $76.7 million from $52.9 million. Loan Originations rose 175 percent year-over-year to $4.3 billion for the first quarter, versus $1.6 billion in the year-ago quarter. "We have been acquiring businesses and hiring talented mortgage bankers since the economic crisis to create one of the largest commercial real estate lending platforms in the country in anticipation of the 2015, 2016, and 2017 commercial mortgage refinancing wave. If Walker & Dunlop's record loan originations of $4.3 billion in the first quarter is any indication, the wave has hit," commented Walker & Dunlop Chairman and CEO Willy Walker. Walker & Dunlop shares rose 2.60 percent to $20.10 in pre-market trading.