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CoreLogic's (CLGX) Q3 Earnings Beat Estimates, Revenues Lag

Zacks Equity Research
·3 min read

CoreLogic, Inc. CLGX reported mixed third-quarter 2020 results with earnings beating the Zacks Consensus Estimate and revenues missing the same.

Adjusted earnings of $1.21 per share beat the consensus mark by 3.4%. Revenue growth, operating leverage, better business mix and cost productivity benefited the bottom line.

Revenues of $437 million missed the consensus mark by 17.7%. The top line benefited from strength in the company’s core mortgage, and insurance and spatial solutions.

Other Quarterly Numbers

Underwriting & Workflow Solutions revenues came in at $263 million, up 26% year over year. Property Intelligence & Risk Management Solutions (PIRM) revenues of $176 million increased 4% year over year. In the quarter, the company witnessed coronavirus-related negative impact of around $4 million on revenues of PIRM.

Adjusted EBITDA of $176 million improved 46% year over year. Adjusted EBITDA margin of 40% expanded 800 basis points (bps).

The company exited the quarter with cash and cash equivalents of $302.3 million compared with $137.3 million recorded at the end of the prior quarter. Long-term debt was $1.5 billion at the end of the quarter. The company generated $176 million of cash from operating activities and CapEx was $8.3 million. During the quarter, it paid out $26.2 million in dividends.

2020 Outlook

CoreLogic estimates revenues in the $1.55-$1.575 billion band, lower than the Zacks Consensus Estimate  pegged at $1.86 billion. Adjusted EPS is anticipated in the range of $3.5-$3.65, lower than the Zacks Consensus Estimate of $3.82. Adjusted EBITDA is anticipated within $560-$575 million.

Performance of Other Business Services Companies

Equifax Inc. EFX reported third-quarter 2020 adjusted earnings of $1.87 per share that beat the Zacks Consensus Estimate by 16.2% and improved 26.4% on a year-over-year basis. Revenues of $1.07 billion outpaced the consensus estimate by 5.9% and improved 22% year over year.

ManpowerGroup Inc. MAN reported third-quarter 2020 earnings of $1.12 per share, beating the consensus mark by 90.5% but declining more than 37.5% year over year. Revenues of $4.58 billion surpassed the consensus mark by 8.7% but declined 12.7% year over year.

IHS Markit Ltd. INFO recorded third-quarter fiscal 2020 adjusted earnings per share of 77 cents that surpassed the consensus estimate by 11.6% and increased 15% on a year-over-year basis. Total revenues came in at $1.07 billion, marginally surpassing the consensus mark but declining 4% from the year-ago quarter.

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