A month has gone by since the last earnings report for Core Laboratories (CLB Quick QuoteCLB - Free Report) . Shares have added about 9.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Core Laboratories due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Core Labs' Q3 Earnings Beat Estimates, Sales Meet

Core Laboratories 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.

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%.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

Currently, Core Laboratories has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Core Laboratories has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.