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Core Laboratories (CLB) Down 0.4% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Core Laboratories (CLB - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Core Laboratories due for a breakout? 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 drivers.
Core Laboratories Q4 Earnings Miss Estimates, Sales In Line
Core Laboratories reported fourth-quarter 2023 adjusted earnings of 19 cents per share, which missed the Zacks Consensus Estimate of 20 cents. The bottom line was also lower than the year-ago quarter’s reported figure of 20 cents. This could be attributed to poor performance in the Production Enhancement segment.
However, this oilfield service provider’s operating revenues of $128 million were in line with the Zacks Consensus Estimate. The top line increased 0.3% from the year-ago quarter’s level of $127.6 million. This can be attributed to the Reservoir Description segment’s impressive performance.
Core Laboratories 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.
Segmental Performance
Reservoir Description: Revenues in this segment increased about 8.3% to $84.6 million from $78.1 million in the fourth quarter of 2022. The top line also beat our projection of $84.3 million. Operating income increased from $6.8 million in the year-ago period to $12.3 million but missed our estimate of $13.2 million. This was due to increased demand for reservoir rock and fluid analysis in international markets.
Production Enhancement: This segment’s revenues decreased 11.6% to $43.6 million from $49.3 million in the prior-year quarter. The figure slightly lagged our estimate of $43.7 million. Operating income of $2.2 million missed our projection of $3.5 million. The figure also deteriorated from the year-ago quarter’s level of $7.9 million due to a decrease in U.S. onshore well completion activity.
Financials and Dividends
As of Dec 31, 2023, Core Labs had cash and cash equivalents worth $15.1 million and long-term debt of $163.1 million. The company’s debt-to-capitalization ratio was 41.1%.
CLB generated $19.4 million of operating cash in the reported quarter. Its capital expenditure totaled $2.7 million.
The company’s board of directors approved a regular quarterly dividend of 1 cent per share on its common stock, payable on Mar 4, 2024, to all shareholders of record as of Feb 12, 2024.
Outlook
For the first quarter of 2024, revenues are anticipated to be in the range of $122-$128 million. Operating income is estimated in the band of $11.8-$14.3 million. EPS is expected between 14 cents and 18 cents.
Reservoir Description revenues are expected to be in the range of $80-$84 million for the first quarter of 2024, with an operating income of $10.1-$11.9 million. Production Enhancement revenues are estimated to be in the band of $42-$44 million during the same time frame, with an operating income of $1.5-$2.2 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -21.88% due to these changes.
VGM Scores
Currently, Core Laboratories has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, 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 is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Baker Hughes (BKR - Free Report) , a stock from the same industry, has gained 3.4%. The company reported its results for the quarter ended December 2023 more than a month ago.
Baker Hughes reported revenues of $6.84 billion in the last reported quarter, representing a year-over-year change of +15.8%. EPS of $0.51 for the same period compares with $0.38 a year ago.
For the current quarter, Baker Hughes is expected to post earnings of $0.40 per share, indicating a change of +42.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.6% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Baker Hughes. Also, the stock has a VGM Score of B.
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Core Laboratories (CLB) Down 0.4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Core Laboratories (CLB - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Core Laboratories due for a breakout? 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 drivers.
Core Laboratories Q4 Earnings Miss Estimates, Sales In Line
Core Laboratories reported fourth-quarter 2023 adjusted earnings of 19 cents per share, which missed the Zacks Consensus Estimate of 20 cents. The bottom line was also lower than the year-ago quarter’s reported figure of 20 cents. This could be attributed to poor performance in the Production Enhancement segment.
However, this oilfield service provider’s operating revenues of $128 million were in line with the Zacks Consensus Estimate. The top line increased 0.3% from the year-ago quarter’s level of $127.6 million. This can be attributed to the Reservoir Description segment’s impressive performance.
Segmental Performance
Reservoir Description: Revenues in this segment increased about 8.3% to $84.6 million from $78.1 million in the fourth quarter of 2022. The top line also beat our projection of $84.3 million. Operating income increased from $6.8 million in the year-ago period to $12.3 million but missed our estimate of $13.2 million. This was due to increased demand for reservoir rock and fluid analysis in international markets.
Production Enhancement: This segment’s revenues decreased 11.6% to $43.6 million from $49.3 million in the prior-year quarter. The figure slightly lagged our estimate of $43.7 million. Operating income of $2.2 million missed our projection of $3.5 million. The figure also deteriorated from the year-ago quarter’s level of $7.9 million due to a decrease in U.S. onshore well completion activity.
Financials and Dividends
As of Dec 31, 2023, Core Labs had cash and cash equivalents worth $15.1 million and long-term debt of $163.1 million. The company’s debt-to-capitalization ratio was 41.1%.
CLB generated $19.4 million of operating cash in the reported quarter. Its capital expenditure totaled $2.7 million.
The company’s board of directors approved a regular quarterly dividend of 1 cent per share on its common stock, payable on Mar 4, 2024, to all shareholders of record as of Feb 12, 2024.
Outlook
For the first quarter of 2024, revenues are anticipated to be in the range of $122-$128 million. Operating income is estimated in the band of $11.8-$14.3 million. EPS is expected between 14 cents and 18 cents.
Reservoir Description revenues are expected to be in the range of $80-$84 million for the first quarter of 2024, with an operating income of $10.1-$11.9 million. Production Enhancement revenues are estimated to be in the band of $42-$44 million during the same time frame, with an operating income of $1.5-$2.2 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -21.88% due to these changes.
VGM Scores
Currently, Core Laboratories has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, 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 is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Baker Hughes (BKR - Free Report) , a stock from the same industry, has gained 3.4%. The company reported its results for the quarter ended December 2023 more than a month ago.
Baker Hughes reported revenues of $6.84 billion in the last reported quarter, representing a year-over-year change of +15.8%. EPS of $0.51 for the same period compares with $0.38 a year ago.
For the current quarter, Baker Hughes is expected to post earnings of $0.40 per share, indicating a change of +42.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.6% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Baker Hughes. Also, the stock has a VGM Score of B.