It has been about a month since the last earnings report for CoreLogic . Shares have added about 29% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CoreLogic due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
CoreLogic Surpasses Q1 Earnings and Revenues Estimates
CoreLogic reported better-than-expected first-quarter 2020 results.
Adjusted earnings of 76 cents per share beat the Zacks Consensus Estimate by 4% and surged 69% year over year. Revenue growth, operating leverage, better business mix and cost productivity benefited the bottom line.
Revenues of $444 million marginally beat the consensus estimate as well as increased 6% year over year. Revenues benefited from strength in the company’s core mortgage and insurance and spatial solutions.
In the quarter, the company witnessed coronavirus-related negative impact of around $6 million on volume and revenues, mainly in its consumer credit-related businesses.
Other Quarterly Numbers
Underwriting & Workflow Solutions (“UWS”) revenues came in at $276 million, up 13% year over year. Property Intelligence & Risk Management Solutions ("PIRM") revenues of $173 million decreased 2% year over year.
Adjusted EBITDA of $130 million improved 33% year over year. Adjusted EBITDA margin was 29% expanded 600 basis points (bps). Operating income of $67 million soared more than 100% and operating margin advanced a whopping 1000 bps to 15%.
The company exited the March-end quarter with cash and cash equivalents of $152.8 million compared with the $105.2 million recorded at the end of prior quarter. Long-term debt was $1.6 billion at the end of the first quarter. The company generated $112.9 million of cash from operating activities and CapEx was $14.3 million. During the reported quarter, it repurchased 50,000 shares for $2.4 million and paid out $17.4 million in dividends.
Q2 Guidance
CoreLogic expects revenues of $420-$445 million, the mid-point ($432.5 million). Adjusted EBITDA is projected at $120-$135 million.
2020 Outlook
CoreLogic estimates revenues in the $1.69-$1.73 billion band. The Zacks Consensus Estimate is pegged at $1.71 billion. Adjusted EPS is anticipated in the range of $2.8-$3. Adjusted EBITDA is anticipated in the range of $500-$525 million. The company expects adjusted EBITDA margin to be 30%.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months. The consensus estimate has shifted -11.61% due to these changes.
VGM Scores
At this time, CoreLogic has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
CoreLogic has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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CoreLogic (CLGX) Up 29% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for CoreLogic . Shares have added about 29% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CoreLogic due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
CoreLogic Surpasses Q1 Earnings and Revenues Estimates
CoreLogic reported better-than-expected first-quarter 2020 results.
Adjusted earnings of 76 cents per share beat the Zacks Consensus Estimate by 4% and surged 69% year over year. Revenue growth, operating leverage, better business mix and cost productivity benefited the bottom line.
Revenues of $444 million marginally beat the consensus estimate as well as increased 6% year over year. Revenues benefited from strength in the company’s core mortgage and insurance and spatial solutions.
In the quarter, the company witnessed coronavirus-related negative impact of around $6 million on volume and revenues, mainly in its consumer credit-related businesses.
Other Quarterly Numbers
Underwriting & Workflow Solutions (“UWS”) revenues came in at $276 million, up 13% year over year. Property Intelligence & Risk Management Solutions ("PIRM") revenues of $173 million decreased 2% year over year.
Adjusted EBITDA of $130 million improved 33% year over year. Adjusted EBITDA margin was 29% expanded 600 basis points (bps). Operating income of $67 million soared more than 100% and operating margin advanced a whopping 1000 bps to 15%.
The company exited the March-end quarter with cash and cash equivalents of $152.8 million compared with the $105.2 million recorded at the end of prior quarter. Long-term debt was $1.6 billion at the end of the first quarter. The company generated $112.9 million of cash from operating activities and CapEx was $14.3 million. During the reported quarter, it repurchased 50,000 shares for $2.4 million and paid out $17.4 million in dividends.
Q2 Guidance
CoreLogic expects revenues of $420-$445 million, the mid-point ($432.5 million). Adjusted EBITDA is projected at $120-$135 million.
2020 Outlook
CoreLogic estimates revenues in the $1.69-$1.73 billion band. The Zacks Consensus Estimate is pegged at $1.71 billion. Adjusted EPS is anticipated in the range of $2.8-$3. Adjusted EBITDA is anticipated in the range of $500-$525 million. The company expects adjusted EBITDA margin to be 30%.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months. The consensus estimate has shifted -11.61% due to these changes.
VGM Scores
At this time, CoreLogic has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
CoreLogic has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.