CoreLogic (CLGX) Down 2.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for CoreLogic (CLGX). Shares have lost about 2.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CoreLogic due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
CoreLogic Earnings Beat Estimates in Q2
CoreLogic 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.
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. 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 company estimates revenues in the $1.86-$1.895 billion band compared with the previous anticipation of $1.84-$1.88 million. Adjusted EPS is anticipated in the range of $3.6-$3.75 compared with the prior prediction of $3.4-$3.6.
Adjusted EBITDA is anticipated within $580-$600 million compared with the pastexpectation of $565-$586 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 21.37% due to these changes.
VGM Scores
At this time, CoreLogic has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise CoreLogic has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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