Walker & Dunlop Loves Lower Interest Rates
The real estate market has been healthy for years, and Walker & Dunlop (NYSE: WD) hasn't hesitated to make hay while the sun is shining. Even though some market participants have become more nervous about the future direction of real estate, the Federal Reserve's recent reversal in monetary policy to cut rates has been a potential encouragement for those hoping to see more activity in the real estate market.
Coming into Wednesday's second-quarter financial report, Walker & Dunlop investors believed that the company would be able to see reasonable gains in both revenue and earnings. Walker & Dunlop's numbers were even better than most had expected, and the company appears to be positioned to keep prospering in the current real estate environment.
Walker & Dunlop's second-quarter results once again dramatically outpaced what analysts were expecting to see. Revenue was higher by 12% to $200.3 million, doubling the pace of top-line growth that most of those following the stock had projected. Net income moved higher by 3% to $42.2 million, and the resulting earnings of $1.33 per share topped the consensus forecast among investors for $1.29 per share on the bottom line.
Quelle Fool.com
