by Zacks Equity ResearchJuly 12, 2012 | Comments : 0 Recommended this article: (0)
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Improved Guidance and Strong Estimate Revisions
CoreLogic raised its second quarter and full year 2012 estimates on June 28 to account for improving mortgage origination levels, successful implementation of cost-saving initiatives and improved results across all segments.
The company now expects to generate 2012 revenues in the range of $1.45 billion to $1.48 billion, up from the previous range of $1.40 billion to $1.45 billion. Earnings for 2012 are now expected between $1.15 and $1.20 per share, up from the previous estimate of $1.00 to $1.05.
For the second quarter of 2012, CoreLogic expects earnings to increase 15% sequentially. The company also expects to buyback 5 million shares in 2012.
For the first quarter (announced on April 25), CoreLogic reported first quarter 2012 earnings per share of 27 cents, surpassing the Zacks Consensus Estimate of 23 cents by 17% and the year-ago earnings of 19 cents by 42%. The top line grew 13.2% to $358.1 million.
Following the guidance increase, all three estimates for 2012 were raised in the last 30 days, pushing the Zacks Consensus Estimate higher by 15% to $1.22. The Zacks Consensus Estimate for 2013 rose almost 7% to $1.26 as three out of the five estimates moved higher over the same timeframe.
Valuation Looks Attractive
Shares of CoreLogic currently trade at a forward P/E of 16.2x, a 24% premium to the peer group average of 13.0x. On a price-to-book basis, shares currently trade at 1.6x, a 54% discount to the peer group average of 3.5x. The trailing 12-month ROE of 7.9% compares favorably with the peer group average of 7.8%.
Market Performance & Technicals
CoreLogic has been trading above its 200-day moving average since the announcement of the robust first quarter results. Following the recent announcement of increased guidance, shares started trading above its 50-day moving average as well.
Volume is fairly strong, averaging roughly 1.05 million daily. The year-to-date return for the stock came in at 52.8%, way ahead of the S&P 500s return of 6.7%.
Incorporated in 1894 and headquartered in Santa Ana, California, CoreLogic provides property, financial and consumer information, analytics, and services in the US. With a network of approximately 5,511 employees, the company offers these services to mortgage originators and servicers, financial institutions, government and government-sponsored enterprises and other businesses.
With a market capitalization of $2.14 billion, CoreLogic competes with Lender Processing Services Inc. (LPS).
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