Why Is CoreLogic (CLGX) Down 26.3% Since Last Earnings Report?

A month has gone by since the last earnings report for CoreLogic (CLGX). Shares have lost about 26.3% 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 Surpasses Q4 Earnings and Revenues Beat Estimates

CoreLogic reported better-than-expected fourth-quarter 2019 results.

Adjusted earnings of 77 cents per share beat the Zacks Consensus Estimate by 8.5% and improved 60.4% year over year. Revenue growth, better business mix, and ongoing productivity and cost efficiency programs benefited the bottom line.

Revenues of $426 million beat the consensus estimate by 1.5% and increased 5.6% year over year. Revenues benefited from the company’s core mortgage and real estate solutions, improved U.S. mortgage unit volumes and an insurance-related acquisition in 2018. Benefits were partially offset by impacts of appraisal management company (AMC) transformation and divestment of technology-related platforms.

Other Quarterly Numbers

Underwriting & Workflow Solutions (“UWS”) revenues came in at $259 million, up 8% year over year. Property Intelligence & Risk Management Solutions ("PIRM") revenues of $171 million increased 2% year over year.

Adjusted EBITDA of $129 million improved 26% year over year. Adjusted EBITDA margin was 30% compared with 25% in the prior year. Operating income of $56 million was up 95% and operating margin increased 600 basis points (bps) to 13%.

The company exited the quarter with cash and cash equivalents of $105.2 million compared with $88.2 million at the end of prior quarter. Long-term debt was $1.6 billion at the end of the quarter.

The company generated $117.1 million of cash from operating activities and CapEx was $28.4 million. During the reported quarter, it repurchased 625,000 shares for $25 million.

2020 Outlook

CoreLogic expects revenues in the range of $1.69-$1.73 billion. Adjusted EPS is anticipated in the range of $2.8-$3. Adjusted EBITDA is expected in the range of $500-$525 million. The company expects adjusted EBITDA margin to be 30%.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month. The consensus estimate has shifted -5.6% due to these changes.

VGM Scores

Currently, CoreLogic has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

CoreLogic has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.