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CoreLogic (CLGX) Earnings and Revenues Beat Estimates in Q1

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CoreLogic, Inc. reported better-than-expected first-quarter 2020 results.

Adjusted earnings of 76 cents per share beat the Zacks Consensus Estimate by 4% and surged 69% year over year. Revenue growth, operating leverage, better business mix and cost productivity benefited the bottom line.

Revenues of $444 million marginally beat the consensus estimate as well as increased 6% year over year. Revenues benefited 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 $6 million on volume and revenues, mainly in its consumer credit-related businesses.

Notably, shares of CoreLogic have gained 4.7%, over the past year, outperforming 1.7% growth of the industry it belongs to.

Other Quarterly Numbers

Underwriting & Workflow Solutions (“UWS”) revenues came in at $276 million, up 13% year over year. Property Intelligence & Risk Management Solutions ("PIRM") revenues of $173 million decreased 2% year over year.

Adjusted EBITDA of $130 million improved 33% year over year. Adjusted EBITDA margin was 29% expanded 600 basis points (bps). Operating income of $67 million soared more than 100% and operating margin advanced a whopping 1000 bps to 15%.

The company exited the March-end quarter with cash and cash equivalents of $152.8 million compared with the $105.2 million recorded at the end of prior quarter. Long-term debt was $1.6 billion at the end of the first quarter. The company generated $112.9 million of cash from operating activities and CapEx was $14.3 million. During the reported quarter, it repurchased 50,000 shares for $2.4 million and paid out $17.4 million in dividends.

Q2 Guidance

CoreLogic expects revenues of $420-$445 million, the mid-point ($432.5 million) of which lies below the Zacks Consensus Estimate of $440.6 million. Adjusted EBITDA is projected at $120-$135 million.

2020 Outlook

CoreLogic estimates revenues in the $1.69-$1.73 billion band. The Zacks Consensus Estimate is pegged at $1.71 billion. Adjusted EPS is anticipated in the range of $2.8-$3. The Zacks Consensus Estimate is pinned at $2.89.

Adjusted EBITDA is anticipated in the range of $500-$525 million. The company expects adjusted EBITDA margin to be 30%.

CoreLogic currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

The Interpublic Group (IPG - Free Report) reported first-quarter 2020 adjusted earnings of 11 cents per share, which beat the consensus mark by 22.2% but remained flat year over year.

Equifax (EFX - Free Report) delivered first-quarter 2020 adjusted earnings of $1.40 per share, which outpaced the consensus mark by 8.5% and improved 16% on a year-over-year basis.

ManpowerGroup (MAN - Free Report) recorded first-quarter 2020 adjusted earnings of 71 cents per share, which missed the Zacks Consensus Estimate by 2.7% and slumped 48.9% year over year.

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