It has been about a month since the last earnings report for Core Laboratories (
CLB Quick Quote CLB - Free Report) . Shares have added about 0.9% 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' Q4 Earnings Beat Estimates, Sales Miss
Core Laboratories reported fourth-quarter 2022 earnings of 20 cents per share that beat the Zacks Consensus Estimate of 19 cents and came in line with the year-ago profit. This could be attributed to the Production Enhancement segment’s better-than-expected performance.
However, this oilfield service provider’s revenues of $127.6 million missed the Zacks Consensus Estimate of $130 million due to underperformance from both segments, though the top line rose 2% from the year-ago quarter’s revenues of $125.1 million. Core Labs’ revenues for the first quarter of 2023 are anticipated in the $125-$129 million range, while the operating income is estimated in the $11.5-$14.5 million band. Segmental Performance Reservoir Description: Revenues of this segment were recorded at $78.1 million, which missed the Zacks Consensus Estimate of $80 million. Moreover, the operating income decreased from $7.2 million in the year-ago period to $6.8 million and also missed the Zacks Consensus Estimate of $7.8 million, mainly due to weak demand for laboratory services. Production Enhancement: Revenues of $49.4 million compared favourably with the year-ago quarter’s $45 million, indicating a year-over-year increase of 9.8%. However, the same underperformed the Zacks Consensus Estimate of $49.85 million. Moreover, the segmental operating income of $7.9 million in the quarter outperformed the Zacks Consensus Estimate of $5.2 million, as the company continued building on its sophisticated and reliable solutions. In the year-ago period, CLB reported an operating income of $7 million. Financials and Dividends
As of Dec 31, 2022, Core Labs had cash and cash equivalents worth $15.4 million and long-term debt of $172.4 million. The company’s debt-to-capitalization ratio was 47.8%.
CLB generated $13.2 million of operating cash in the reported quarter. Its capital expenditure totalled $2 million. Core Labs’ board of directors approved a regular quarterly dividend of 1 cent per share on the company's common stock, payable on Mar 6, 2023, to all shareholders of record as of Feb 1, 2022. 2023 Outlook
For the first quarter of 2023, Core Labs’ revenues are anticipated in the $125-$129 million range, while the operating income is estimated in the $11.5-$14.5 million band.
Earnings per share (EPS) for the first quarter of 2023 are expected between 14 cents and 19 cents. The first quarter 2023 guidance also assumes an effective tax rate of 20%. How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
The consensus estimate has shifted 23.08% due to these changes.
Currently, Core Laboratories has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Core Laboratories has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Core Laboratories belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Liberty Oilfield Services (
LBRT Quick Quote LBRT - Free Report) , has gained 7.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Liberty Oilfield Services reported revenues of $1.23 billion in the last reported quarter, representing a year-over-year change of +79.3%. EPS of $0.82 for the same period compares with -$0.30 a year ago.
Liberty Oilfield Services is expected to post earnings of $0.82 per share for the current quarter, representing a year-over-year change of +2833.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
Liberty Oilfield Services has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.