CoreLogic Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of financial data aggregator CoreLogic (NYS: CLGX) climbed 10% today after the company's full-year 2012 guidance topped Wall Street estimates.
So what: CoreLogic's outlook for 2012 is so bright -- the company now sees full-year EPS of $0.95 to $1.05 versus the consensus of only $0.89 -- that analysts have no choice but to raise their valuation estimates. Just this past August, the board of directors explored a possible sale of the company to unlock shareholder value, but the strong guidance suggests that management might be able to do it on their own.
Now what: "CoreLogic is exiting 2011 with strong momentum driven primarily by an upswing in mortgage origination volumes and successful execution of our Project 30 cost reduction plan," CEO Anand Nallathambi said. "Continued revenue growth and cost savings position CoreLogic for strong financial results in 2012." In fact, management is highly confident that it will be able to save about $60 million in expenses in 2012. However, given its low returns on equity and still-precarious financial position, CoreLogic remains a questionable long-term opportunity.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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