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CoreLogic (CLGX) Raises Guidance on Operational Strength

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CoreLogic, Inc.(CLGX - Free Report) has raised the guidance for full-year 2020 and 2021. The company is optimistic about its quarterly and annual results on the back of organic revenue growth, operational efficacy and market volumes.

Notably, Frank Martell, president and chief executive officer at CoreLogic, stated, “As our process progresses, CoreLogic continues to drive high performance across our solutions and the pathway to deliver our financial commitments going forward is clear and evident. Our consistent operating and financial performance is creating significant value for our shareholders. CoreLogic is on track to deliver record operating and financial performance this year and set the stage for additional value creation.”

The company’s shares have charted a solid trajectory in recent times, appreciating 79.6% so far this year, significantly outperforming 17% growth of the industry it belongs to.

 

Raised 2020 Guidance

CoreLogic anticipates upbeat full-year 2020 revenues and adjusted EBITDA on the back of strength in property-tax processing, insurance & spatial, and international and consistent solid housing market fundamentals. Further, the company expects operating leverage and cost productivity to drive adjusted EBITDA margin beyond 38%, up more than 800 basis points year over year. The company expects nearly 6% organic revenue growth in 2020.

CoreLogic now expects revenues of $1.62-$1.63 billion compared with the prior guidance of $1.55-$1.575 billion. The Zacks Consensus Estimate of $1.64 billion is higher than the current guidance.

Adjusted EPS is anticipated in the range of $4.15-$4.25 compared with the prior guidance of $3.50-$3.65. The Zacks Consensus Estimate of $3.64 is lower than the current guidance.

Adjusted EBITDA is now anticipated between $620 million and $630 million compared with the prior guidance of $560-$575 million.

Raised 2021 Guidance

Considering the encouraging 2020 outlook and strength across housing-market fundamentals, CoreLogic has raised its full-year 2021 guidance.

The company now expects revenues of $1.64-$1.675 billion compared with the prior guidance of $1.585-$1.630 billion. The Zacks Consensus Estimate of $1.60 billion is lower than the current guidance.

Adjusted EPS is anticipated in the range of $4.40-$4.65 compared with the prior guidance of $4.00-$4.20. The Zacks Consensus Estimate of $4.01 is lower than the current guidance.

Adjusted EBITDA is now anticipated between $575 million and $600 million compared with the prior guidance of $625-$650 million.

Zacks Rank and Stocks to Consider

CoreLogic currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Business Services sector are Automatic Data Processing (ADP - Free Report) , Insperity (NSP - Free Report) and BG Staffing (BGSF - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share (three to five years) growth rate for Automatic Data Processing, Insperity and BG Staffing is 10%, 12% and 20%, respectively.

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