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Core Laboratories (CLB - Free Report) reported third-quarter 2022 results, wherein adjusted earnings of 18 cents a share beat the Zacks Consensus Estimate of 9 cents. This could be attributed to the Reservoir Description segment performing better than expected.
Moreover, earnings in the reported quarter were in line with the year-ago quarter’s earnings. This oilfield service provider’s adjusted revenues of $126 million met the Zacks Consensus Estimate. The top line also rose 6.7% from the year-ago quarter’s revenues of $117.9 million.
Segmental Performance
Reservoir Description: Revenues increased marginally to $79 million from $78.8 million in the third quarter of 2021 and met the Zacks Consensus Estimate. Moreover, the operating income rose from $4.4 million in the year-ago period to $9.8 million and also beat the Zacks Consensus Estimate of $5.75 million, mainly due to growth driven by project progression and the realignment of global trading patterns.
The segment’s operating margin of 12.4% was higher than the prior-year quarter’s 5.6%.
Production Enhancement: Revenues of $46.97 million compared favorably with $39.2 million in the third quarter a year earlier, which is a 19.8% increase year over year. However, the same underperformed the Zacks Consensus Estimate of $47.42 million.
Moreover, the segmental operating income of $4.42 million in the quarter underperformed the Zacks Consensus Estimate of an operating profit of $4.76 million. The year-ago period reported an operating income of $2.78 million.
The segment’s operating margin of 9.4% was higher than the prior-year quarter’s 7.1% due to an increase in the blend of manufacturing margins and service margins.
Core Laboratories N.V. Price, Consensus and EPS Surprise
As of Sep 30, 2022, Core Labs had cash and cash equivalents worth $13.7 million and long-term debt of $182.7 million. The company’s debt-to-capitalization was approximately 50%.
CLB generated $5.8 million of operating cash in the reported quarter. Its capital expenditure totaled $2.7 million.
Core Labs’ board of directors approved a regular quarterly dividend of a cent per share on the company's common stock, payable on Nov 28, 2022, to all shareholders of record as of Nov 7, 2022.
2022 Outlook
For the fourth quarter of 2022, Core Labs’ revenues are anticipated in the $126-$131 million range, while the operating income is estimated in the $13-$15 million band.
Earnings per share for the fourth quarter of 2022 are expected between 17 cents and 21 cents. The fourth-quarter 2022 guidance also assumes an effective tax rate of 20%.
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Core Labs (CLB) Q3 Earnings Surpass Estimates, Sales Meet
Core Laboratories (CLB - Free Report) reported third-quarter 2022 results, wherein adjusted earnings of 18 cents a share beat the Zacks Consensus Estimate of 9 cents. This could be attributed to the Reservoir Description segment performing better than expected.
Moreover, earnings in the reported quarter were in line with the year-ago quarter’s earnings. This oilfield service provider’s adjusted revenues of $126 million met the Zacks Consensus Estimate. The top line also rose 6.7% from the year-ago quarter’s revenues of $117.9 million.
Segmental Performance
Reservoir Description: Revenues increased marginally to $79 million from $78.8 million in the third quarter of 2021 and met the Zacks Consensus Estimate. Moreover, the operating income rose from $4.4 million in the year-ago period to $9.8 million and also beat the Zacks Consensus Estimate of $5.75 million, mainly due to growth driven by project progression and the realignment of global trading patterns.
The segment’s operating margin of 12.4% was higher than the prior-year quarter’s 5.6%.
Production Enhancement: Revenues of $46.97 million compared favorably with $39.2 million in the third quarter a year earlier, which is a 19.8% increase year over year. However, the same underperformed the Zacks Consensus Estimate of $47.42 million.
Moreover, the segmental operating income of $4.42 million in the quarter underperformed the Zacks Consensus Estimate of an operating profit of $4.76 million. The year-ago period reported an operating income of $2.78 million.
The segment’s operating margin of 9.4% was higher than the prior-year quarter’s 7.1% due to an increase in the blend of manufacturing margins and service margins.
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 Sep 30, 2022, Core Labs had cash and cash equivalents worth $13.7 million and long-term debt of $182.7 million. The company’s debt-to-capitalization was approximately 50%.
CLB generated $5.8 million of operating cash in the reported quarter. Its capital expenditure totaled $2.7 million.
Core Labs’ board of directors approved a regular quarterly dividend of a cent per share on the company's common stock, payable on Nov 28, 2022, to all shareholders of record as of Nov 7, 2022.
2022 Outlook
For the fourth quarter of 2022, Core Labs’ revenues are anticipated in the $126-$131 million range, while the operating income is estimated in the $13-$15 million band.
Earnings per share for the fourth quarter of 2022 are expected between 17 cents and 21 cents. The fourth-quarter 2022 guidance also assumes an effective tax rate of 20%.
Zacks Rank & Other Key Picks
Core Labs currently sports a Zacks Rank #1 (Strong Buy). Some other similar-ranked stocks from the energy space that warrant a look include NexTier Oilfield Solutions , Comstock Resources (CRK - Free Report) and HF Sinclair (DINO - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NexTier’s 2022 earnings stands at $1.40 per share, up about 425.6% from the year-ago loss of $2.81.
NEX beat estimates for earnings in all the trailing four quarters, the average being around 271%.
The Zacks Consensus Estimate for Comstock’s 2022 earnings has been revised upward by about 11.4% over the past 60 days from $3.33 to $3.71 per share.
The consensus mark for CRK’s 2022 earnings is pegged at $3.71 per share, indicating an increase of about 219.8% from the year-ago earnings of $1.16.
Estimates for HF Sinclair’s 2022 earnings have been revised about 9.3% upward over the past 60 days from $13.15 per share to $14.38.
The consensus mark for DINO’s 2022 earnings is pegged at $14.38 per share, up 846% from the year-ago earnings of $1.52.