It has been about a month since the last earnings report for CoreLogic (CLGX). Shares have added about 15.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CoreLogic due for a pullback? 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 Q3 Earnings Beat Estimates, Revenues Lag
CoreLogic 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 (UWS) 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.
CoreLogic estimates revenues in the $1.55-$1.575 billion band. Adjusted EPS is anticipated in the range of $3.5-$3.65. Adjusted EBITDA is anticipated within $560-$575 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
Currently, CoreLogic has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren’t focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, CoreLogic has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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