CoreLogic's 4Q earnings hurt by restructuring charge
CoreLogic's fourth-quarter earnings declined from the previous year because of the slower mortgage origination market and an $8 million impairment charge due to its restructuring plans.
The company reported net income of $12.6 million in the fourth quarter, down from $22.5 million in the third quarter and $64.7 million for the fourth quarter of 2017. The year-ago fourth quarter results benefited from tax reform.
For the full year, CoreLogic had net income of $121.9 million, down from $152.2 million for 2017.
In December, CoreLogic announced it was exiting the loan origination software and default management businesses over the following 24 months and instead would concentrate on the appraisal management company unit.
CoreLogic's fourth-quarter revenue decline of 11% to $403 million was a result of the decline in origination volume and lower AMC revenue.
"CoreLogic continued to successfully execute against its long-term strategic plan in 2018 despite significant U.S. mortgage market headwinds," President and CEO Frank Martell said in a press release. "We also reduced our costs significantly and drove productivity. In addition, we continued to scale our core operations, expanded our international and insurance business, accelerated the transformation of our AMC and initiated the exit of certain noncore legacy units."
"Throughout 2018, we reinvested in our business with a focus on building our core capabilities in data and technology, which we expect will be a foundation for future growth and margin expansion," Martell added.
For 2019, CoreLogic expects revenue between $1.62 billion and $1.68 billion. The refocusing is expected to reduce total revenue between $70 billion and $100 billion for the year. There may be additional cash and noncash charges during 2019, the press release said.