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Core Laboratories (CLB) Up 1.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Core Laboratories (CLB - Free Report) . Shares have added about 1.4% 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 drivers.
Core Labs Q1 Earnings & Sales Beat Estimates
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.
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 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 Dividends
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.
2023 Outlook
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.
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.
VGM Scores
Currently, Core Laboratories has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. 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 D. 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 #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, Liberty Oilfield Services (LBRT - Free Report) , a stock from the same industry, has gained 0.7%. The company reported its results for the quarter ended March 2023 more than a month ago.
Liberty Oilfield Services reported revenues of $1.26 billion in the last reported quarter, representing a year-over-year change of +59.2%. EPS of $0.90 for the same period compares with -$0.03 a year ago.
Liberty Oilfield Services is expected to post earnings of $0.96 per share for the current quarter, representing a year-over-year change of +74.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
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.
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Core Laboratories (CLB) Up 1.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Core Laboratories (CLB - Free Report) . Shares have added about 1.4% 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 drivers.
Core Labs Q1 Earnings & Sales Beat Estimates
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 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 Dividends
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.
2023 Outlook
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.
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.
VGM Scores
Currently, Core Laboratories has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. 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 D. 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 #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, Liberty Oilfield Services (LBRT - Free Report) , a stock from the same industry, has gained 0.7%. The company reported its results for the quarter ended March 2023 more than a month ago.
Liberty Oilfield Services reported revenues of $1.26 billion in the last reported quarter, representing a year-over-year change of +59.2%. EPS of $0.90 for the same period compares with -$0.03 a year ago.
Liberty Oilfield Services is expected to post earnings of $0.96 per share for the current quarter, representing a year-over-year change of +74.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
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.