CoreLogic Shares Tumble on Lowered 2011 OutlookFriday, August 5, 2011
Shares of Santa Ana-based CoreLogic Inc. were down more than 30% in mid-morning trading on Friday, after the data and analytics company materially lowered its financial outlook for the rest of the year.
CoreLogic, a provider of data to real estate and mortgage companies, reported $31.5 million in second-quarter earnings after the market closed on Thursday, slightly higher than what analysts had been expecting and up from $24.4 million a year ago.
Second-quarter revenue of $396 million also topped analyst expectations of about $399 million.
Despite the profitable quarter, investors were spooked by the company’s disclosure that it expects its year-end earnings to fall well below prior expectations.
The company’s prior guidance was for 2011 earnings before interest, taxes, depreciation and amortization to be about $350 million.
The company now expects EBITDA to come in between $260 million and $280 million for the full year.
CoreLogic officials cited a lack of seasonal lift in its business due to the slow housing and mortgage market, as well as weakness in the company’s appraisal and default lines, as the largest culprits for the revised outlook.
The company’s stock was down 30% as of mid-Friday on the news, giving the company a market value of about $1.1 billion. Shares are currently down about 50% from the company’s 52-week high.