) shares touched their 52-week high on July 10, 2012 after raising
its full-year outlook late last month. This provider of
information, analytics and business services has also put together
four consecutive quarters of positive earnings surprises with an
average beat of practically 24%. CLGX is a Zacks #1 Rank (Strong
Improved Guidance and Strong Estimate Revisions
CoreLogic raised its second quarter and full year 2012 estimates on
June 28 to account for improving mortgage origination levels,
successful implementation of cost-saving initiatives and improved
results across all segments.
The company now expects to generate 2012 revenues in the range of
$1.45 billion to $1.48 billion, up from the previous range of $1.40
billion to $1.45 billion. Earnings for 2012 are now expected
between $1.15 and $1.20 per share, up from the previous estimate of
$1.00 to $1.05.
For the second quarter of 2012, CoreLogic expects earnings to
increase 15% sequentially. The company also expects to buyback 5
million shares in 2012.
For the first quarter (announced on April 25), CoreLogic reported
first quarter 2012 earnings per share of 27 cents, surpassing the
Zacks Consensus Estimate of 23 cents by 17% and the year-ago
earnings of 19 cents by 42%. The top line grew 13.2% to $358.1
Following the guidance increase, all three estimates for 2012 were
raised in the last 30 days, pushing the Zacks Consensus Estimate
higher by 15% to $1.22. The Zacks Consensus Estimate for 2013 rose
almost 7% to $1.26 as three out of the five estimates moved higher
over the same timeframe.
Valuation Looks Attractive
Shares of CoreLogic currently trade at a forward P/E of 16.2x, a
24% premium to the peer group average of 13.0x. On a price-to-book
basis, shares currently trade at 1.6x, a 54% discount to the peer
group average of 3.5x. The trailing 12-month ROE of 7.9% compares
favorably with the peer group average of 7.8%.
Market Performance & Technicals
CoreLogic has been trading above its 200-day moving average since
the announcement of the robust first quarter results. Following the
recent announcement of increased guidance, shares started trading
above its 50-day moving average as well.
Volume is fairly strong, averaging roughly 1.05 million daily. The
year-to-date return for the stock came in at 52.8%, way ahead of
the S&P 500's return of 6.7%.
Incorporated in 1894 and headquartered in Santa Ana, California,
CoreLogic provides property, financial and consumer information,
analytics, and services in the US. With a network of approximately
5,511 employees, the company offers these services to mortgage
originators and servicers, financial institutions, government and
government-sponsored enterprises and other businesses.
With a market capitalization of $2.14 billion, CoreLogic competes
with Lender Processing Services Inc. (
CORELOGIC INC (CLGX): Free Stock Analysis
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