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Core Laboratories (CLB) Q2 Earnings In Line, Revenues Up Y/Y
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Core Laboratories N.V. (CLB - Free Report) recently reported second-quarter 2018 adjusted earnings of 59 cents per share, in line with the Zacks Consensus Estimate. This compares favorably with the prior-year quarter figure of 48 cents. The results were driven by improved performance of the Product Enhancement segment.
Total revenues of $175.5 million marginally outpaced the Zacks Consensus Estimate of $175 million. Revenues were up 10.9% from the prior-year level of $158.2 million. Higher revenues from the Product Enhancement segment boosted the top line, partially offset by delayed recovery of international market activities.
Core Laboratories N.V. Price, Consensus and EPS Surprise
Reservoir Description: This segment’s revenues were $102.1 million compared with $104.3 million in second-quarter 2017. Of the total revenues of the segment, more than 80% comes from the international market. The year-over-year fall in revenues were caused by delayed recovery of international market’s activities, especially in the Middle East and Asia-Pacific regions.
Operating income of the segment was about $14.8 million in the quarter compared with $18.7 million in the prior-year quarter. Operating margin of the segment was 15%.
Production Enhancement: Segment revenues were approximately $73.4 million in the quarter compared with $53.9 million in second-quarter 2017. Increased demand for the company’s advanced technology solutions helped in generating higher revenues. Notably, U.S. land revenues at the segment surged 48% year over year.
Segment operating income was about $18.4 million in the quarter compared with $8.7 million in the prior-year quarter, reflecting a surge of 111.5%. Operating margin of the segment was 26%. Improved utilization, along with higher-technology services and products drove margins in both the segments.
Balance Sheet & Free Cash Flow
As of Jun 30, 2018, Core Laboratories had cash and cash equivalents of around $13 million and long-term debt (including lease obligations) of approximately $241.7 million. The debt-to-capitalization ratio of the company was 60.5%.
Capital expenditure in the second quarter was $7.5 million, reflecting a significant increase from $2.9 million in the year-ago quarter.
The company generated free cash flow of approximately $19.5 million in the quarter under review.
Dividend
The board of directors declared a quarterly cash dividend of 55 cents per share, payable on Aug 13, 2018 to its shareholders of record as of Jul 23, 2018.
Guidance
For third-quarter 2018, Core Laboratories expects earnings to be around 64-66 cents per share. The company expects third-quarter revenues in the range of $177-179 million while operating income is expected between $36.2 million and 37.2 million. The company expects operating margin to be more than 20% in third-quarter 2018.
Zacks Rank & key Picks
Currently, Amsterdam-based oil field service provider Core Laboratorieshas a Zacks Rank #5 (Strong Sell). Investors interested in the Energy sector can opt for some better-ranked stocks like Canadian Natural Resources Limited (CNQ - Free Report) , ConocoPhillips (COP - Free Report) and Cheniere Energy, Inc. (LNG - Free Report) . While Canadian Natural Resources and ConocoPhillips sport a Zacks Rank #1 (Strong Buy), Cheniere Energy has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based Canadian Natural Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 35.3% year over year, while its bottom line is expected to increase more than 168%.
Houston, TX-based ConocoPhillips is an integrated energy company. The company’s top line for 2018 is likely to improve 18.4% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 226.9%.
Houston, TX-based Cheniere Energy mainly focuses on liquefied natural gas-related businesses. The company’s top line for 2018 is anticipated to improve 25.9% year over year, while its bottom line is expected to increase more than 225%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Core Laboratories (CLB) Q2 Earnings In Line, Revenues Up Y/Y
Core Laboratories N.V. (CLB - Free Report) recently reported second-quarter 2018 adjusted earnings of 59 cents per share, in line with the Zacks Consensus Estimate. This compares favorably with the prior-year quarter figure of 48 cents. The results were driven by improved performance of the Product Enhancement segment.
Total revenues of $175.5 million marginally outpaced the Zacks Consensus Estimate of $175 million. Revenues were up 10.9% from the prior-year level of $158.2 million. Higher revenues from the Product Enhancement segment boosted the top line, partially offset by delayed recovery of international market activities.
Core Laboratories N.V. Price, Consensus and EPS Surprise
Core Laboratories N.V. Price, Consensus and EPS Surprise | Core Laboratories N.V. Quote
Segment Performance
Reservoir Description: This segment’s revenues were $102.1 million compared with $104.3 million in second-quarter 2017. Of the total revenues of the segment, more than 80% comes from the international market. The year-over-year fall in revenues were caused by delayed recovery of international market’s activities, especially in the Middle East and Asia-Pacific regions.
Operating income of the segment was about $14.8 million in the quarter compared with $18.7 million in the prior-year quarter. Operating margin of the segment was 15%.
Production Enhancement: Segment revenues were approximately $73.4 million in the quarter compared with $53.9 million in second-quarter 2017. Increased demand for the company’s advanced technology solutions helped in generating higher revenues. Notably, U.S. land revenues at the segment surged 48% year over year.
Segment operating income was about $18.4 million in the quarter compared with $8.7 million in the prior-year quarter, reflecting a surge of 111.5%. Operating margin of the segment was 26%. Improved utilization, along with higher-technology services and products drove margins in both the segments.
Balance Sheet & Free Cash Flow
As of Jun 30, 2018, Core Laboratories had cash and cash equivalents of around $13 million and long-term debt (including lease obligations) of approximately $241.7 million. The debt-to-capitalization ratio of the company was 60.5%.
Capital expenditure in the second quarter was $7.5 million, reflecting a significant increase from $2.9 million in the year-ago quarter.
The company generated free cash flow of approximately $19.5 million in the quarter under review.
Dividend
The board of directors declared a quarterly cash dividend of 55 cents per share, payable on Aug 13, 2018 to its shareholders of record as of Jul 23, 2018.
Guidance
For third-quarter 2018, Core Laboratories expects earnings to be around 64-66 cents per share. The company expects third-quarter revenues in the range of $177-179 million while operating income is expected between $36.2 million and 37.2 million. The company expects operating margin to be more than 20% in third-quarter 2018.
Zacks Rank & key Picks
Currently, Amsterdam-based oil field service provider Core Laboratorieshas a Zacks Rank #5 (Strong Sell). Investors interested in the Energy sector can opt for some better-ranked stocks like Canadian Natural Resources Limited (CNQ - Free Report) , ConocoPhillips (COP - Free Report) and Cheniere Energy, Inc. (LNG - Free Report) . While Canadian Natural Resources and ConocoPhillips sport a Zacks Rank #1 (Strong Buy), Cheniere Energy has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based Canadian Natural Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 35.3% year over year, while its bottom line is expected to increase more than 168%.
Houston, TX-based ConocoPhillips is an integrated energy company. The company’s top line for 2018 is likely to improve 18.4% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 226.9%.
Houston, TX-based Cheniere Energy mainly focuses on liquefied natural gas-related businesses. The company’s top line for 2018 is anticipated to improve 25.9% year over year, while its bottom line is expected to increase more than 225%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>