Back to top

Analyst Blog

Zacks Equity Research

Core Labs Hikes Dividend by 14.2%

PBR CLB

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Oilfield service company Core Laboratories N.V. (CLB - Analyst Report) increased its quarterly common stock dividend by 14.2% to 32 cents per share ($1.28 per share annualized). The new dividend will be paid on February 22, 2013 to shareholders of record as of January 22.

The strength of Core Laboratories’ business model reflects the company’s commitment toward returning value to shareholders with its strong cash generation capabilities. Prior to this revision, the company had increased its quarterly dividend by 3 cents per share in January 2012.

Core Laboratories has a strong capital deployment policy through regular share repurchase and payment of dividends. During the third quarter of 2012, the company repurchased 283,513 shares for an aggregate cost of $33,191,000 at an average price of $117.07 per share. Moreover, it has paid common stock dividends amounting to $13,252,000 to shareholders during the same period.

As on September 30, 2012, Core Laboratories had cash and cash equivalents of $24.7 million. The company generated free cash flow of $42.0 million.

We believe that the increase in dividend and share repurchase programs will boost investor confidence in the stock, thereby driving share value.

Amsterdam, Netherlands-based Core Laboratories N.V provides reservoir management and production enhancement services to the oil and gas industry on a global basis. The company operates in over 50 countries and divides its operations in three principal business lines: Reservoir Description, Product Enhancement, and Reservoir Management.

Core Labs has operations in over 50 countries, with approximately 50% of its total revenue coming from international markets. In particular, the company has collaborated extensively with Brazil's state-run energy giant Petroleo Brasileiro S.A. or Petrobras (PBR - Analyst Report) to undertake a number of reservoir analysis ventures in onshore and offshore plays of the country.

However, with Core Labs’ dependence on foreign makets, it is also exposed to risks associated with doing business abroad.  Such risks include embargoes and/or expropriation of assets, exchange rate risks, terrorism and political/civil sentiment in critical countries like Iran, Iraq, Nigeria and Venezuela.

The company currently retains a Zacks Rank #4 (Sell), implying that it is expected to underperform the broader U.S. equity market over the next one to three months.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%