Walker & Dunlop (NYSE:WD) Issues Earnings Results, Misses Estimates By $1.18 EPS

Walker & Dunlop (NYSE:WD) posted its earnings results on Thursday. The financial services provider reported $0.28 EPS for the quarter, missing the consensus estimate of $1.46 by ($1.18), FiscalAI reports. Walker & Dunlop had a net margin of 9.31% and a return on equity of 8.85%. The business had revenue of $340.02 million during the quarter, compared to analyst estimates of $343.66 million. During the same quarter in the prior year, the business earned $1.32 earnings per share. The firm’s revenue was down .4% compared to the same quarter last year.

Here are the key takeaways from Walker & Dunlop’s conference call:

• Q4 included $66 million of impairments and credit losses tied to loan repurchases and exiting affordable assets — including a $29 million charge related to the Freddie Mac investigation — which produced a diluted loss per share of $0.41 (versus $1.04 EPS excluding these charges).
• Core capital-markets momentum was strong: transaction volumes reached $18 billion in Q4 (up from $7B in Q1), multifamily sales grew to $4.5B in Q4, and W&D finished 2025 as the #1 Fannie Mae DUS lender and the #2 GSE originator with 11.2% market share.
• The Freddie Mac review found borrower fraud but no employee collusion; the origination team at fault is no longer employed, W&D has indemnified or repurchased $222 million of loans since 2024, and repurchases represent ~19 basis points of the $115B GSE portfolio with cumulative losses of ~4 bps.
• Balance-sheet and capital actions: year-end cash was $299 million, management expects to recover $25M–$35M from asset sales and eliminate ~$4M–$5M of quarterly operating costs, and the board raised the quarterly dividend to $0.68.
• Management launched the “Journey to ’30” growth plan emphasizing capital markets, WDSuite/technology and AI, and a bigger portfolio recapture target (aiming to boost recapture and add ~ $10B of originations), while guiding 2026 EPS of $3.50–$4.00 and adjusted core EPS of $4.50–$5.00.

Walker & Dunlop Stock Down 3.3%

Shares of WD stock traded down $1.58 during trading hours on Friday, reaching $45.88. 1,473,500 shares of the stock traded hands, compared to its average volume of 297,974. The firm has a market capitalization of $1.56 billion, a PE ratio of 13.61 and a beta of 1.55. Walker & Dunlop has a 1-year low of $42.12 and a 1-year high of $90.00. The business has a fifty day moving average price of $62.23 and a 200 day moving average price of $72.00.

Walker & Dunlop Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 27th. Stockholders of record on Friday, March 13th will be given a $0.68 dividend. This represents a $2.72 annualized dividend and a dividend yield of 5.9%. This is an increase from Walker & Dunlop’s previous quarterly dividend of $0.67. The ex-dividend date of this dividend is Friday, March 13th. Walker & Dunlop’s payout ratio is 79.53%.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on WD shares. Jefferies Financial Group assumed coverage on shares of Walker & Dunlop in a research report on Friday, December 19th. They issued a “buy” rating and a $75.00 target price for the company. Weiss Ratings reiterated a “hold (c-)” rating on shares of Walker & Dunlop in a report on Monday, December 29th. Keefe, Bruyette & Woods lowered their price objective on shares of Walker & Dunlop from $80.00 to $65.00 and set an “outperform” rating on the stock in a research note on Friday. Wall Street Zen downgraded Walker & Dunlop from a “hold” rating to a “sell” rating in a research report on Saturday, November 8th. Finally, Citigroup reiterated a “market outperform” rating on shares of Walker & Dunlop in a research report on Friday, December 5th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $81.25.

Institutional Trading of Walker & Dunlop

Several large investors have recently added to or reduced their stakes in the company. Strs Ohio acquired a new stake in shares of Walker & Dunlop in the first quarter worth $51,000. Empowered Funds LLC purchased a new stake in Walker & Dunlop in the 4th quarter worth about $62,000. iSAM Funds UK Ltd purchased a new stake in Walker & Dunlop in the 3rd quarter worth about $139,000. Quadrant Capital Group LLC purchased a new stake in Walker & Dunlop in the 3rd quarter worth about $176,000. Finally, Entropy Technologies LP acquired a new stake in Walker & Dunlop during the 4th quarter worth about $253,000. 80.97% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Walker & Dunlop

Here are the key news stories impacting Walker & Dunlop this week:

• Positive Sentiment: Board raised the quarterly dividend to $0.68 (1.5% increase), implying a ~5.7% yield — supports income investors and can underpin the share base.
• Positive Sentiment: Management provided 2026 EPS guidance of $3.50–$4.00 and said it will accelerate asset sales to shore up earnings and pursue market‑share growth; this signals a path to restore profitability (may be seen as constructive if execution follows). Walker & Dunlop outlines $3.50–$4.00 EPS guidance
• Neutral Sentiment: Keefe, Bruyette & Woods cut its price target from $80 to $65 but kept an “outperform” rating — still signals upside vs. current levels, though the lower target reduces near‑term analyst support. Benzinga
• Neutral Sentiment: Conference call and transcript / slide deck are available for investors to assess management’s explanation of the quarter and details on asset sales and capital allocation. Earnings Call Transcript
• Negative Sentiment: Q4 EPS missed heavily: reported $0.28 vs. consensus ~$1.46 (a ~$1.18 shortfall); revenue of $340.0M slightly missed estimates — the large EPS miss is the primary catalyst for the decline and raises near‑term execution concerns. MarketBeat earnings summary
• Negative Sentiment: Market commentary notes shares are falling on the results; the stock is trading well below its 50‑day and 200‑day moving averages and nearer its one‑year low, which can amplify downside while investors reassess valuation and the timing of asset sales. Why Walker & Dunlop Shares Are Falling Today

Walker & Dunlop Company Profile

Walker & Dunlop is one of the largest providers of commercial real estate finance in the United States, specializing in the origination, servicing and sale of loans secured by multifamily, seniors housing, healthcare, student housing and manufactured housing properties. The firm offers a full suite of debt and equity solutions, including agency financing through Fannie Mae and Freddie Mac, HUD and FHA-insured loans, bridge and construction financing, mezzanine debt, preferred equity, and investment sales advisory.

With roots dating back to 1937 and its headquarters in Bethesda, Maryland, Walker & Dunlop has expanded its platform through both organic growth and strategic acquisitions.