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Core Laboratories (CLB - Free Report) reported fourth-quarter 2021 results, wherein adjusted earnings of 20 cents a share were on par with the Zacks Consensus Estimate. This is attributable to an improvement in the overall business landscape for the company and year-over-year international revenues of more than 14%. The bottom line showed an improvement from the year-ago quarter’s earnings of 18 cents per share. This upside is attributable to the year-over-year increase in revenues. This oilfield service provider’s adjusted revenues of $125.1 million beat the Zacks Consensus Estimate of $123 million by about 1.5%. The top line also rose from the year-ago quarter’s revenues of $113.7 million.
Segmental Performance
Reservoir Description: Revenues decreased about 4.6% to $80.1 million from $83.8 million in the fourth quarter of 2020 and also lagged the Zacks Consensus Estimate of $84 million. Moreover, operating income fell from $19.4 million in the year-ago period to $7.2 million and also missed the Zacks Consensus Estimate of $9.2 million due to costs and inefficiencies associated with COVID-19. The operating margin of 9% was lower than the prior-year quarter’s 23.2%.
Production Enhancement: Revenues of $45 million compared favorably with $29.9 million in the fourth quarter a year earlier, which is a 51% increase year over year. It also beat the Zacks Consensus Estimate of $40.4 million. Additionally, growth possibilities were affected throughout the quarter. Moreover, segmental operating income of $7 million in the quarter beat the Zacks Consensus Estimate of $5.20 million. The year-ago period reported an operating income of $4.5 million. The strong numbers reflected growth in manufacturing efficiencies, robust overseas sales and continued market penetration, which more than offset longer supply-chain lead time and raw material shortage.
Core Laboratories N.V. Price, Consensus and EPS Surprise
As of Dec 31, 2021, Core Labs had cash and cash equivalents worth $17.7 million and long-term debt of $188.6 million. The company’s debt-to-capitalization was 54%. In the reported quarter, CLB generated $7.1 million of operating cash and its capital expenditure totaled $4.8 million. This, in turn, led to $2.4 million of free cash flow (FCF). This is the 81st consecutive quarter of the company’s FCF recognition. Core Labs’ board of directors approved regular quarterly dividend of a cent per share on the company's common stock, payable on Mar 7, 2022, to all shareholders of record as of Feb 14, 2022.
2022 View
This Zacks Rank #3 (Hold) company anticipates the momentum in U.S. land activity to pursue but predicts lower client activity due to the seasonality for the first quarter of 2022, which usually results in a decline in first-quarter revenues by mid-single digits.
As Core Labs’ prospects are directly associated with expanding its client activity and tapping new geographies, it continues to focus on the ongoing development of new client-driven technologies and geographical exploration along with a deepened concentration on digitization and automation throughout its business.
Earnings Snapshot of Oilfield Service Players
With the current condition auguring well for oil service stocks, let’s look at how some of the top players fared.
Halliburton Company (HAL - Free Report) reported a fourth-quarter 2021 adjusted net income per share of 36 cents, beating the Zacks Consensus Estimate of 34 cents.
Revenues of $4.3 billion were 32.1% higher than the year-ago quarter and beat the Zacks Consensus Estimate of $4.1 billion.
Schlumberger Limited (SLB - Free Report) recently reported fourth-quarter earnings of 41 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 39 cents.
The oilfield service giant recorded total revenues of $6,225 million, outpacing the Zacks Consensus Estimate of $6,094 million. The top line also improved 12.5% from the year-ago quarter’s $5,532 million.
Baker Hughes (BKR - Free Report) reported fourth-quarter 2021 adjusted earnings of 25 cents per share, missing the Zacks Consensus Estimate of 29 cents due to lower cost productivity in Digital Solutions.
However, Baker Hughes’ revenues for the October-December period totaled $5.5 billion, edging past the Zacks Consensus Estimate by 0.4%.
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Core Labs (CLB) Q4 Earnings Meet Estimates, Revenues Surpass
Core Laboratories (CLB - Free Report) reported fourth-quarter 2021 results, wherein adjusted earnings of 20 cents a share were on par with the Zacks Consensus Estimate. This is attributable to an improvement in the overall business landscape for the company and year-over-year international revenues of more than 14%. The bottom line showed an improvement from the year-ago quarter’s earnings of 18 cents per share. This upside is attributable to the year-over-year increase in revenues.
This oilfield service provider’s adjusted revenues of $125.1 million beat the Zacks Consensus Estimate of $123 million by about 1.5%. The top line also rose from the year-ago quarter’s revenues of $113.7 million.
Segmental Performance
Reservoir Description: Revenues decreased about 4.6% to $80.1 million from $83.8 million in the fourth quarter of 2020 and also lagged the Zacks Consensus Estimate of $84 million. Moreover, operating income fell from $19.4 million in the year-ago period to $7.2 million and also missed the Zacks Consensus Estimate of $9.2 million due to costs and inefficiencies associated with COVID-19. The operating margin of 9% was lower than the prior-year quarter’s 23.2%.
Production Enhancement: Revenues of $45 million compared favorably with $29.9 million in the fourth quarter a year earlier, which is a 51% increase year over year. It also beat the Zacks Consensus Estimate of $40.4 million.
Additionally, growth possibilities were affected throughout the quarter. Moreover, segmental operating income of $7 million in the quarter beat the Zacks Consensus Estimate of $5.20 million. The year-ago period reported an operating income of $4.5 million. The strong numbers reflected growth in manufacturing efficiencies, robust overseas sales and continued market penetration, which more than offset longer supply-chain lead time and raw material shortage.
Core Laboratories N.V. Price, Consensus and EPS Surprise
Core Laboratories N.V. price-consensus-eps-surprise-chart | Core Laboratories N.V. Quote
Financials and Dividend
As of Dec 31, 2021, Core Labs had cash and cash equivalents worth $17.7 million and long-term debt of $188.6 million. The company’s debt-to-capitalization was 54%.
In the reported quarter, CLB generated $7.1 million of operating cash and its capital expenditure totaled $4.8 million. This, in turn, led to $2.4 million of free cash flow (FCF). This is the 81st consecutive quarter of the company’s FCF recognition.
Core Labs’ board of directors approved regular quarterly dividend of a cent per share on the company's common stock, payable on Mar 7, 2022, to all shareholders of record as of Feb 14, 2022.
2022 View
This Zacks Rank #3 (Hold) company anticipates the momentum in U.S. land activity to pursue but predicts lower client activity due to the seasonality for the first quarter of 2022, which usually results in a decline in first-quarter revenues by mid-single digits.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the first quarter of 2022, Core Labs’ revenues are anticipated in the $117-$122 million range, while operating income is estimated in the $11.9-$14 million band.
As Core Labs’ prospects are directly associated with expanding its client activity and tapping new geographies, it continues to focus on the ongoing development of new client-driven technologies and geographical exploration along with a deepened concentration on digitization and automation throughout its business.
Earnings Snapshot of Oilfield Service Players
With the current condition auguring well for oil service stocks, let’s look at how some of the top players fared.
Halliburton Company (HAL - Free Report) reported a fourth-quarter 2021 adjusted net income per share of 36 cents, beating the Zacks Consensus Estimate of 34 cents.
Revenues of $4.3 billion were 32.1% higher than the year-ago quarter and beat the Zacks Consensus Estimate of $4.1 billion.
Schlumberger Limited (SLB - Free Report) recently reported fourth-quarter earnings of 41 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 39 cents.
The oilfield service giant recorded total revenues of $6,225 million, outpacing the Zacks Consensus Estimate of $6,094 million. The top line also improved 12.5% from the year-ago quarter’s $5,532 million.
Baker Hughes (BKR - Free Report) reported fourth-quarter 2021 adjusted earnings of 25 cents per share, missing the Zacks Consensus Estimate of 29 cents due to lower cost productivity in Digital Solutions.
However, Baker Hughes’ revenues for the October-December period totaled $5.5 billion, edging past the Zacks Consensus Estimate by 0.4%.