In an effort to boost its shareholders value, the board of
) approved a new share buyback program. Per the approval, the
company will be able to repurchase up to $250 million worth of
This new program will replace the previous one which had $156
million remaining under its authorization
CoreLogic's financial strength allows it to continue with its
buyback program. Cash from operations, generated by CoreLogic in
the first nine months of 2012, which improved 380.9% year over
year, will continue to cushion future buybacks. The company spent
$197.9 million to buyback 8.3 million shares in the third
quarter, taking the tally to 10 million shares repurchased for
$226.6 million year to date.
In April this year, the company announced its expectation to
repurchase 5 million shares in 2012. In the second quarter, it
doubled the plan to repurchase 10 million shares by the year end.
In order to achieve this goal, the company increased its share
repurchase substantially by 388.2% quarter over quarter in the
third quarter and completed the buyback program worth 10 million
shares ahead of schedule.
CoreLogic expects to deliver operating earnings per share in a
range of $1.45-1.50. We believe that share repurchases will help
it achieve the guided range. The Zacks Consensus Estimates for
2012 is currently pegged at $1.53, higher than the company's
guidance and also representing a 67.8% year- over-year
The company continues to focus on improving revenue, expanding
margins and fortifying its capital structure, which helped it
deliver solid results year to date.
However, no earnings momentum has been witnessed over the last 7
days. We expect the news of the new buyback authorization will
encourage analysts to pull up their estimates, providing upward
directional pressure on the Zacks rank. CoreLogic currently
holds a Zacks #2 Rank, translating into a short-term Buy rating.
Lender Processing Services Inc.
) carries a Zacks #3 rank that translates into a short- term Hold
CORELOGIC INC (CLGX): Free Stock Analysis
LENDER PROC SVC (LPS): Free Stock Analysis
To read this article on Zacks.com click here.