In First Quarterly Earnings after Spin-Off, CoreLogic Earns $24.4m
CoreLogic, a real estate services and data provider, reported $24.4m in earnings in Q210, following its spin-off from First American Financial Corp. in June. CoreLogic's stock (NYSE: CLGX) opened for the first time June 2 at $18.74 per share, according to Google Finance. The closing price peaked at $20.34 on June 3, and has fluctuated ever since. Google Finance put the closing price the day before CoreLogic's August 5 earnings release at $19.85. Generally Accepted Accounting Principles (GAAP) financial reporting standards require CoreLogic to include certain expenses it accrued while still under the First American umbrella. These include $38.6m in corporate expenses for Q210, $7.3m in one-time costs and $9.8m in recorded tax expense from the spin-off. The CoreLogic division of First American earned $70.3m in the second quarter of last year and $29.4m in Q110. CoreLogic reported $468.3m in revenues, down 6% from the $499.9m reported in the second quarter of last year but up 4.4% from the $448.2m in Q110. Anand Nallathambi, president and CEO of CoreLogic said revenues grew across all business segments from the previous quarter with most of the growth coming from its analytical and advisory revenues, and an improved mix in the default and technology services division. "We expect that a successful sale of the employer, investigative and litigation consulting business will improve our business mix and provide sharpened focus on CoreLogic’s growth areas," Nallathambi said. Its data and analytics division reported $49.5 in earnings in Q210, up 10% from the previous quarter, driven by higher margins in risk and fraud reporting. “While we are cautious in our outlook for growth tied to mortgage originations, we expect that a shift towards generating revenues tied to more differentiated data, analytics and consultative business solutions will strengthen our results as we work through this period in the mortgage market," Nallathambi said. Write to Jon Prior. The author held no relevant investments.