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Why Is Core Laboratories (CLB) Down 4.9% Since the Last Earnings Report?
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It has been about a month since the last earnings report for Core Laboratories N.V. (CLB - Free Report) . Shares have lost about 4.9% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2016 Results
Oilfield services company Core Laboratories N.V.’s fourth-quarter 2016 adjusted diluted earnings of $0.41 per share matched the Zacks Consensus Estimate. The bottom line was notably below the year-ago quarter earnings of $0.65 per share.
Total revenue of $150 million surpassed the Zacks Consensus Estimate of $145 million by 3.17% but was nearly 20.8% below the prior-year quarter level of $183 million.
Segment Performance
Reservoir Description: Segment revenues were $99.4 million compared with $114.8 million in fourth-quarter 2015. Lower activity levels hampered the results.
Operating income (excluding foreign exchange losses) for the segment was about $17.3 million in the reported quarter. Operating margin for the quarter was around 17.9%.
Production Enhancement: Segment revenues were approximately $43.2 million in the reported quarter as against $56.6 million in fourth-quarter 2015. Reduced North American drilling activity hurt the results.
Operating income (excluding foreign exchange losses) for the segment was about $2.9 million in the reported quarter.
Reservoir Management: Segment revenues of about $7 million plunged nearly 36.4% year over year. The segment incurred an operating loss of $1.3 million.
Balance Sheet and Free Cash Flow
As of Dec 31, 2016, Core Laboratories had cash and cash equivalents of $14.8 million. Capital expenditures for the fourth quarter were $3.6 million.
The company generated free cash flow of approximately $19.6 million in the fourth quarter of 2016.
Quarterly Dividend and Share Repurchase
On Jan 10, 2017, the company’s board of directors announced the first-quarter dividend. Core Laboratories will pay a cash dividend of $0.55 per share, same as the previous payout. The dividend will be paid on Feb 17, to shareholders on record as of Jan 20, 2017.
Guidance
For the first quarter, Core Laboratories expects earnings per share of $0.42. The company expects first-quarter revenues to be $150 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, Core Laboratories' stock has a subpar Growth Score of 'D', though it is doing a bit better on the momentum front with an 'C'. The stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is suitable solely for momentum.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Core Laboratories (CLB) Down 4.9% Since the Last Earnings Report?
It has been about a month since the last earnings report for Core Laboratories N.V. (CLB - Free Report) . Shares have lost about 4.9% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2016 Results
Oilfield services company Core Laboratories N.V.’s fourth-quarter 2016 adjusted diluted earnings of $0.41 per share matched the Zacks Consensus Estimate. The bottom line was notably below the year-ago quarter earnings of $0.65 per share.
Total revenue of $150 million surpassed the Zacks Consensus Estimate of $145 million by 3.17% but was nearly 20.8% below the prior-year quarter level of $183 million.
Segment Performance
Reservoir Description: Segment revenues were $99.4 million compared with $114.8 million in fourth-quarter 2015. Lower activity levels hampered the results.
Operating income (excluding foreign exchange losses) for the segment was about $17.3 million in the reported quarter. Operating margin for the quarter was around 17.9%.
Production Enhancement: Segment revenues were approximately $43.2 million in the reported quarter as against $56.6 million in fourth-quarter 2015. Reduced North American drilling activity hurt the results.
Operating income (excluding foreign exchange losses) for the segment was about $2.9 million in the reported quarter.
Reservoir Management: Segment revenues of about $7 million plunged nearly 36.4% year over year. The segment incurred an operating loss of $1.3 million.
Balance Sheet and Free Cash Flow
As of Dec 31, 2016, Core Laboratories had cash and cash equivalents of $14.8 million. Capital expenditures for the fourth quarter were $3.6 million.
The company generated free cash flow of approximately $19.6 million in the fourth quarter of 2016.
Quarterly Dividend and Share Repurchase
On Jan 10, 2017, the company’s board of directors announced the first-quarter dividend. Core Laboratories will pay a cash dividend of $0.55 per share, same as the previous payout. The dividend will be paid on Feb 17, to shareholders on record as of Jan 20, 2017.
Guidance
For the first quarter, Core Laboratories expects earnings per share of $0.42. The company expects first-quarter revenues to be $150 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Core Laboratories N.V. Price and Consensus
Core Laboratories N.V. Price and Consensus | Core Laboratories N.V. Quote
VGM Scores
At this time, Core Laboratories' stock has a subpar Growth Score of 'D', though it is doing a bit better on the momentum front with an 'C'. The stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is suitable solely for momentum.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.