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CoreLogic (CLGX) Earnings and Revenues Beat Estimates in Q2

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CoreLogic, Inc. (CLGX - Free Report) reported better-than-expected second-quarter 2020 results.

Adjusted earnings of $1.02 per share beat the Zacks Consensus Estimate by 10.9% and also surged 69% year over year. Revenue growth, operating leverage, better business mix and cost productivity benefited the bottom line.

Revenues of $477.5 million beat the consensus mark by 2.9% and also increased 3.9% year over year. The top line improved 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 $15 million on revenues of both segments.

CoreLogic, Inc. Price, Consensus and EPS Surprise

CoreLogic, Inc. Price, Consensus and EPS Surprise

Other Quarterly Numbers

Underwriting & Workflow Solutions (UWS) revenues came in at $305 million, up 9% year over year. Property Intelligence & Risk Management Solutions (PIRM) revenues of $177 million decreased 3.8% year over year.

Adjusted EBITDA of $158 million improved 18% year over year. Adjusted EBITDA margin of33% expanded 400 basis points (bps).

The company exited the quarter with cash and cash equivalents of $137.3 million compared with $152.8 million recorded at the end of the prior quarter. Long-term debt was $1.6 billion at the end of the quarter. The company generated $130.2 million of cash from operating activities and CapEx was $17.6 million. During the reported quarter, it repurchased 150,000 shares and paid out $17.4 million in dividends.

Q3 Guidance

CoreLogic expects revenues of $485-$515 million, the mid-point ($500 million) of which exceeds the Zacks Consensus Estimate of $496.39 million. Adjusted EBITDA is projected within$160-$175 million. The impact of COVID-19 is expected to be around $10-$15 million on both revenues and adjusted EBITDA.

2020 Outlook

CoreLogic raised its guidance for the full year. The companyestimates revenues in the $1.86-$1.895 billion band compared with the previous anticipation of $1.84-$1.88 million. The Zacks Consensus Estimate is pegged at $1.88 billion. Adjusted EPS is anticipated in the range of $3.6-$3.75 compared with the prior prediction of $3.4-$3.6. The Zacks Consensus Estimate is pinned at $3.65.

Adjusted EBITDA is anticipated within $580-$600 million compared with the pastexpectation of $565-$586 million.

CoreLogic currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Business Services Companies

Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.

IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis. The reported figure exceeds the guided range of $1.00-$1.09.

Robert Half’s (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.

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