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Core Laboratories (CLB - Free Report) reported first-quarter 2023 adjusted earnings of 19 cents per share, which beat the Zacks Consensus Estimate of 17 cents. The bottom line also improved from the year-ago quarter’s reported figure of 8 cents. This can be attributed to higher-than-expected revenues from Reservoir Description.
Core Labs’ adjusted revenues of $128.4 million beat the Zacks Consensus Estimate of $126 million by 1.9%. The top line also rose from the year-ago quarter’s recorded figure of $115.3 million. This can be attributed to the Reservoir Description segment’s impressive performance.
Core Laboratories N.V. Price, Consensus and EPS Surprise
Reservoir Description: Revenues increased about 7.2% to $80.2 million from $74.8 million in the first quarter of 2022. The top line beat the Zacks Consensus Estimate of $75 million. Operating income increased from $361,000 in the year-ago period to $2.4 million but missed the Zacks Consensus Estimate of $4.2 million. This was due to the heavy impact of the Russia-Ukraine conflict.
Production Enhancement: Revenues increased 19% year over year to $48.2 million from $40.6 million in the prior-year quarter. The same lagged the Zacks Consensus Estimate of $52 million.
Operating income of $3.3 million missed the Zacks Consensus Estimate of $6.04 million. The figure improved from the year-ago quarter’s reported loss of $918,000. The weak numbers could be attributed to lower-than-expected U.S. land completion activity.
Financials and Dividend
As of Mar 31, 2023, Core Labs had cash and cash equivalents of $16.3 million and long-term debt of $180.4 million. The company’s debt-to-capitalization was 47.4%.
Operating cash stood at $3.2 million while capital expenditure totaled $2.2 million. This led to a negative free cash flow of $5.4 million.
CLB’s board of directors approved a regular quarterly dividend of a cent per share on the company's common stock, payable on May 30, 2023, to all shareholders of record as of May 8, 2023.
Guidance
For the second quarter of 2023, revenues are anticipated in the range of $130-$135 million. Operating income is estimated in the $14.5-$17.5 million band.
Earnings per share are expected between 20 cents and 24 cents.
Core Labs expects international operators to increase upstream spending plans for 2023 by mid-teens from the 2022 level.This, in turn, is likely to improve international onshore and offshore activities.
The company also projects low-single-digit revenue growth for the Reservoir Description segment and mid-single-digit revenue growth for the Production Enhancement segment.
It also expects the crude-oil market to keep recovering over the next few years. Despite recession concerns, the supply-demand balance is expected to tighten throughout 2023.
Zacks Rank and Key Picks
Currently, Core Labs carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like Par Pacific (PARR - Free Report) and Marathon Petroleum (MPC - Free Report) ,each sporting a Zacks Rank #1 (Strong Buy), and Ranger Energy Services (RNGR - Free Report) , holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific: PARR is worth approximately $1.63 billion. Its shares have risen 82.1% in the past year.
The company manages and maintains interests in energy and infrastructure businesses. Its operating segment consists of refining, retail and logistics.
Marathon Petroleum: MPC is valued at around $58.02 billion. It delivered an average earnings surprise of 20.91% for the last four quarters and its current dividend yield is 2.30%.
The company currently has a forward P/E ratio of 6.36. In comparison, its industry has an average forward P/E of 9.10, which means MPC is trading at a discount to the group.
Ranger Energy Services: RNGR is valued at around $242.99 million. In the past year, its shares have gained 16.8%.
Ranger Energy Services currently has a forward P/E ratio of 5.30. In comparison, its industry has an average forward P/E of 11.60, which means RNGR is trading at a discount to the group.
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Core Labs (CLB) Q1 Earnings & Sales Beat Estimates
Core Laboratories (CLB - Free Report) reported first-quarter 2023 adjusted earnings of 19 cents per share, which beat the Zacks Consensus Estimate of 17 cents. The bottom line also improved from the year-ago quarter’s reported figure of 8 cents. This can be attributed to higher-than-expected revenues from Reservoir Description.
Core Labs’ adjusted revenues of $128.4 million beat the Zacks Consensus Estimate of $126 million by 1.9%. The top line also rose from the year-ago quarter’s recorded figure of $115.3 million. This can be attributed to the Reservoir Description segment’s impressive performance.
Core Laboratories N.V. Price, Consensus and EPS Surprise
Core Laboratories N.V. price-consensus-eps-surprise-chart | Core Laboratories N.V. Quote
Segmental Performance
Reservoir Description: Revenues increased about 7.2% to $80.2 million from $74.8 million in the first quarter of 2022. The top line beat the Zacks Consensus Estimate of $75 million. Operating income increased from $361,000 in the year-ago period to $2.4 million but missed the Zacks Consensus Estimate of $4.2 million. This was due to the heavy impact of the Russia-Ukraine conflict.
Production Enhancement: Revenues increased 19% year over year to $48.2 million from $40.6 million in the prior-year quarter. The same lagged the Zacks Consensus Estimate of $52 million.
Operating income of $3.3 million missed the Zacks Consensus Estimate of $6.04 million. The figure improved from the year-ago quarter’s reported loss of $918,000. The weak numbers could be attributed to lower-than-expected U.S. land completion activity.
Financials and Dividend
As of Mar 31, 2023, Core Labs had cash and cash equivalents of $16.3 million and long-term debt of $180.4 million. The company’s debt-to-capitalization was 47.4%.
Operating cash stood at $3.2 million while capital expenditure totaled $2.2 million. This led to a negative free cash flow of $5.4 million.
CLB’s board of directors approved a regular quarterly dividend of a cent per share on the company's common stock, payable on May 30, 2023, to all shareholders of record as of May 8, 2023.
Guidance
For the second quarter of 2023, revenues are anticipated in the range of $130-$135 million. Operating income is estimated in the $14.5-$17.5 million band.
Earnings per share are expected between 20 cents and 24 cents.
Core Labs expects international operators to increase upstream spending plans for 2023 by mid-teens from the 2022 level.This, in turn, is likely to improve international onshore and offshore activities.
The company also projects low-single-digit revenue growth for the Reservoir Description segment and mid-single-digit revenue growth for the Production Enhancement segment.
It also expects the crude-oil market to keep recovering over the next few years. Despite recession concerns, the supply-demand balance is expected to tighten throughout 2023.
Zacks Rank and Key Picks
Currently, Core Labs carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like Par Pacific (PARR - Free Report) and Marathon Petroleum (MPC - Free Report) ,each sporting a Zacks Rank #1 (Strong Buy), and Ranger Energy Services (RNGR - Free Report) , holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific: PARR is worth approximately $1.63 billion. Its shares have risen 82.1% in the past year.
The company manages and maintains interests in energy and infrastructure businesses. Its operating segment consists of refining, retail and logistics.
Marathon Petroleum: MPC is valued at around $58.02 billion. It delivered an average earnings surprise of 20.91% for the last four quarters and its current dividend yield is 2.30%.
The company currently has a forward P/E ratio of 6.36. In comparison, its industry has an average forward P/E of 9.10, which means MPC is trading at a discount to the group.
Ranger Energy Services: RNGR is valued at around $242.99 million. In the past year, its shares have gained 16.8%.
Ranger Energy Services currently has a forward P/E ratio of 5.30. In comparison, its industry has an average forward P/E of 11.60, which means RNGR is trading at a discount to the group.