CoreLogic bet on property valuations pays off big time

The third quarter earnings are in for CoreLogic and they are pretty.

Third quarter reported revenues totaled $524 million compared with $386 million in the same 2015 period.

That year-over-year increase of 36% is driven primarily by its valuation solutions business, which started booming back in the second quarter.

Operating income from continuing operations up 29% to $85 million fueled by higher revenue and expense management benefits.

Net income at CoreLogic is also up 27% to $36 million. Diluted earnings per share from continuing operations are also up 29% to $0.4.

Adjusted EPS is up 35% to $0.73 per share.

Growth in insurance and spatial solutions, international operations and higher risk management and underwriting solutions revenues also pushed profits higher, the company said in its earnings report.

“Our consistently outstanding operating performance over the past six years has allowed us to return almost $1 billion in capital to our shareholders in the form of share repurchases.  Our success is the result of a relentless focus on efficiently deploying scaled must have data-driven solutions that, collectively, enable our clients to more precisely underwrite and manage their risks and capitalize on opportunities as they arise,” added Frank Martell, Chief Operating Officer of CoreLogic.

The earning, however, are offset partially by the timing of project-related revenues and the wind down of non-core product lines. 

The property Intelligence segment revenue rose 79% to $281 million driven principally by growth attributable to the aforementioned valuations business as well as insurance and spatial solutions and international operations. 

Risk Management and Work Flow revenues totaled $246 million, 6% above 2015 levels, as the benefits from higher U.S. origination unit volumes and market share and/or pricing gains in tax, flood zone determination and credit services were partially offset by the exit of non-core product lines.

“Our cash flow generation remains consistently strong and we are returning the majority of these funds to our shareholders,” Martell added. “In 2016 and 2017, we expect to repurchase at least 8 million of our common shares and believe the continued repurchase of a significant amount of our shares represents a substantial value creation mechanism for our long term shareholders.”

CoreLogic’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information.

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