CoreLogic OKs $350M Share Buyback
In an effort to enhance its shareholder value, the board of directors at CoreLogic Inc. (CLGX) extended its share buyback program by $350 million.
The shares gained 0.5% to close at 34.88 per share on Dec 4 following the announcement of approval of the repurchase program.
The current program replaces the earlier one that has $116.2 million remaining under its authorization. In the first nine months CoreLogic repurchased about 5 million shares for $133.6 million. In July this year, CoreLogic eyes repurchase of atleast 8 million shares in 2013.
CoreLogic’s earlier share repurchase program was approved in Dec 2012, wherein the company was authorized to buyback shares worth $250 million. CoreLogic’s continued share repurchase activity reflects its strong financial position. A sustained solid operational performance continues to cushion the company’s sturdy financial position.
Share repurchases benefit the company’s earnings per share, book value as well as shareholder equity, as the buyback activity lowers share count. Meanwhile, CoreLogic continues to concentrate on enhancing its core line business growth and operating income. The company delivered three straight quarters of positive earnings surprise with an average of 13.2%.
However, no earnings momentum has been witnessed over the last 7 days. As a result, the Zacks Consensus Estimate for 2013 and 2014 remained at $1.71 and $1.84 per share, respectively. Nevertheless, we expect that the news of the new buyback authorization will encourage analysts to pull up their estimates.
CoreLogic presently sports a Zacks Rank #1 (Strong Buy). Other stocks also worth considering in the consulting industry include FTI Consulting Inc. (FCN), Stantec Inc. (STN) and Towers Watson & Co. (TW). All these stocks carry the same Zacks Rank as CoreLogic.
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